China LNG index down
China's import price index for liquefied natural gas dropped last week, according to data from the Shanghai Petroleum and Natural Gas Exchange (SHPGX). The LNG index is for delivered cargoes, not including tax. The most recent quote for Cost, Insurance and Freight (CIF) delivered cargoes was given as 2,504 yuan ($353) per tonne, or $6.84 per million British thermal units, compared with the previous week’s price of 2,894 yuan ($408) per tonne, or $7.91 per MMBtu. The index, jointly developed by a monitoring centre under the General Administration of Customs and the SHPGX, was launched on October 16, 2019, and offers CIF cargo price guidance for Chinese importers.
Asian spot’s sign of life
Asian LNG spot prices in the form of the Japan-Korea Marker from Platts are showing signs of partial recovery with the June cargoes edging higher to $2.115 per million British thermal units and July cargoes at $2.450 per MMBtu. The all-time JKM low was recently under $2.00 per MMBtu and traders may be heartened by the October JKM moving above $3.000 per MMBtu level and December 2020 being at $4.235 per MMBtu.
UK supply flows
Another LNG cargo will be delivered to the UK South Hook terminal in Milford Haven on May 21 onboard the 210,100 cubic metres capacity Q-Flex carrier, the “Al Safliya”, from Ras Laffan in Qatar with the UK benchmark National Balancing Point price remaining lower than the Dutch TTF at $1.50 per MMBtu last week.