According to the latest Reuters report, Asian LNG spot prices have fallen to a new multi-year low, with at least one cargo selling for less than US$4 per million Btu.
This latest LNG spot price decline has come as a result of new projects, sanctioned during periods where prices were high, starting to ramp up production, just as demand and economic growth have slowed. Mild weather in northern Asia has also contributed to curbing demand.
According to Reuters trading sources, the lowest spot price for years, and the lowest ever for this time of the year, was recently recorded when Brunei LNG sold a spot cargo, with a 30 – 31 March delivery date, for approximately US$3.90 – US$3.95 per million Btu. The cargo was reportedly sold on a delivered ex-ship (DES) basis into the Japan, Korea, Taiwan, China region.