LNG

US energy regulators have finally intervened in the long-running dispute between Venture Global LNG and its Calcasieu Pass LNG export plant in Louisiana and major customers over delays in activating sales and purchase agreements (SPAs) for contract cargoes.

Cargo liftings of liquefied natural gas increased worldwide for a fifth week, and likely the highest of 2020, as North Asia spot LNG prices jumped to $9.200 per million British thermal units for February 2021 and North Sea Brent crude oil prices hit the $50 a barrel mark for the first time in 10 months.

Singapore LNG spot cargo indices were becalmed by large volumes and lower seasonal demand in a market with the highest quotes for North Asia in the second half of July.

The Singapore average index for June crept up to US$5.306 per MMBtu from last week’s June average of US$5.221 per MMBtu.

Singapore’s latest LNG indices released on May 9 included a price of US$5.290 per MMBtu for the first half of June and US$5.332 per MMBtu for the second half of June.

The surplus in global LNG supplies continued to put downward pressure on prices in the Northern Hemisphere summer market as crude oil prices moved lower on the week to around $70 per barrel.

Cargo prices for the first half of July were at US$5.395 and were higher for the second half of July at US$5.447.

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

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 a June average of US$5.555 per MMBtu versus last week’s June average of US$5.506 per MMBtu.

North Asia cargoes for the second half of June were at US$5.566 per MMBtu, before rising for the first half of July to US$5.644 per MMBtu, then moving higher to US$5.708 for the second half of June.

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 is assessed in collaboration with London-based, inter-dealer global brokerage Tullett Prebon for regional cargoes shipped to India and the Middle East and averaged US$5.400 per MMBtu for June, an increase from last week’s June average of US$5.353 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 June at US$5.420 per MMBtu before increasing to US$5.497 per MMBtu for the first half of July.

The price for the second half of July edged higher to US$5.570 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.