Higher Spot Price Behind Burst Of US LNG Cargoes To Asia

Higher Spot Price Behind Burst Of US LNG Cargoes To Asia

Jan 6, 2017

A 77% leap in spot prices for LNG in Asia since mid-September has triggered as many as nine shipments from the U.S. to the continent’s demand center, Platts has reported.

Platts based its reporting on results derived from its cFlow trade flow software.

Difficulties at Chevron’s facility in the Pilbarra’s Gorgon project have contributed to the tighter regional market. The company announced on Jan. 4 that it had restarted its Train 1 after a monthlong shutdown.

Prior to December 2016, only one of 33 sailings from Sabine Pass, La., had been destined for northeast Asia, Platts said, and the August journey of the Maran Gas Apollonia to China was designated a “test” cargo. The region’s major demand centers are Japan, South Korea, China and Taiwan.

China received one U.S. LNG cargo in December and is reportedly the destination of several of the vessels now at sea. South Korea also received a shipment in December.

Platts said at least one of the vessels was headed to Japan. Taiwan has yet to import any U.S. LNG.