LNG

Singapore LNG spot cargo prices moved higher again to be over the US$4.500 per million British thermal units level for fixtures to North Asia and the Dubai-Kuwait-India market as September quotes were now available.

The Singapore average index for August increased to US$4.249 per MMBtu from last week’s average of US$4.066 per MMBtu.

Singapore’s latest LNG indices released on June 20 included a price of US$4.071 per MMBtu for the second half of July before edging higher to US$4.201 per MMBtu for the first half of August.

The high volumes of supply in the market continued to impose downward pressure on prices, while crude oil was stable in the week at around $62 per barrel.

Southeast Asia cargo prices for the second half of August were at US$4.298 and were highest for the first half of September at US$4.431.

The Sling is an index series for LNG developed by the Singapore Exchange (SGX) and its subsidiary Energy Market Company (EMC).

It is a spot index for cargoes “on the waters in the vicinity of Singapore which could go into any port” and based on cargo sizes of 135,000 cubic metres capacity to 175,000 cubic metres capacity.

The North Asia price rose to an August average of US$4.560 per MMBtu compared with last week’s average of US$4.361 per MMBtu.

North Asia cargoes for the second half of July were at US$4.361 per MMBtu, before edging up for the first half of August to US$4.512 per MMBtu, then moving higher to US$4.608 for the second half of August.

The first half of September price for the North Asia market was US$4.740 MMBtu, the highest on offer.

The North Asia prices are for delivery ex-ship (DES) to all ports in Japan, Korea, Taiwan and China.

The Dubai-Kuwait-India Sling index for regional cargoes shipped to India and the Middle East averaged US$4.373 per MMBtu for August, an increase on last week’s average of US$4.205 per MMBtu.

The DKI index, based on a cargo of between 138,000 cubic metres capacity and 170,000 cubic metres, is seen in the second half of July at US$4.183 per MMBtu before increasing to US$4.320 per MMBtu for the first half of August.

The price for the second half of August rose to US$4.427 per MMBtu and the highest for the region was fixed at the first half of September price of US$4.570 per MMBtu.

The SGX LNG Index Group (Sling) is an initiative by SGX and EMC for spot LNG price discovery.

It is a benchmark based on assessments of LNG cargo value by market participants. They provide assessments based on the value of an LNG cargo at a specific location for delivery.

The Sling is based on participants submitting assessments to determine an index value.

“The participant pool consists of a broad group of market players to ensure that any Sling Assessment is as representative of actual market conditions as possible,” says the SGX, while pointing out that the participant is kept confidential at all times.

The SGX-EMC LNG prices include both lean and rich cargoes.

Singapore LNG spot cargo prices dropped to around three-year lows because of high volumes and plunging seasonal demand as cargoes for North Asia destinations such as China and Japan lost US$0.66 per MMBtu in a week from already depressed levels.