Platts: Spot LNG Prices Cool Off ahead of Summer

first_img              -9.3            4.105 Qinhuangdao coal($/MMBtu)    May-14 Press Release, April 18, 2014 JKM ($/MMBtu)    15.559              -11.8      3.723    15.434        April-14       15.464        Month-On-Month             Change %          17.636center_img Platts Spot JKM and Substitute Fuel Prices (Monthly Averages)*        4.055    Year-On-Year      Change %       May-13               -6.0 180 CST fuel oil($/MMBtu)          16.420                  0.6                  -8.2                 -4.3      16.129 zoom Prices of liquefied natural gas (LNG) for May delivery to Asia fell 11.8% to an average $15.559 per million British thermal units (/MMBtu) as the market continued to cool off ahead of the summer peak demand season, according to the latest Platts Japan/Korea Marker (JKM) for month-ahead delivery.The data reflects the daily Platts JKM for May assessed between March 17 and April 15, expressed as a monthly average.The Platts JKM for May was 0.6% higher than the May 2013 average of $15.464/MMBtu. But May prices this year decreased at a faster rate than in the previous year. The May 2014 JKM started the assessment period at $16.05/MMBtu and closed the period at $14.80/MMBtu. In 2013, the May JKM started the month at $15.95/MMBtu before ending at $14.95/MMBtu.“The current demand picture is looking quite similar to what we saw a year ago, as buyers seem to have covered most of their requirements by term contracts, which is leaving very little demand for incremental volumes from the spot market,” said Stephanie Wilson, managing editor of Asia LNG at Platts, a global energy, petrochemicals and metals information provider and a premier source of benchmark price references. “The combination of high inventories and weak appetite for buying spot cargoes resulted in buyers bidding well below offer levels. Sources have indicated that buyers are reluctant to lock in deals in a falling market, as prices last year bottomed out at $14.15/MMBtu on May 15 for June delivery.”“This year, there are also additional supplies from Angola LNG while the new Papua New Guinea LNG project could add to the supply further out in the summer,” Wilson added.Meanwhile, prices of thermal coal and fuel oil – possible competing fuels to LNG – were also lower. On a month-over-month basis, thermal coal prices were down 9.3% for the March 17 to April 15 assessment period, while fuel oil prices were down 6.0%.last_img read more

Alaska governor takes aim at cruise ship monitoring program

JUNEAU, Alaska — A program that monitors Alaska’s cruise ships could be restructured by the governor’s administration.CoastAlaska reported Thursday that the future is uncertain for the Ocean Rangers program.Republican Gov. Mike Dunleavy vetoed line items equaling $444 million in reductions to Alaska’s operating budget in June.The cuts blocked the Ocean Rangers budget, but the state Legislature restored the program’s $3.4 million in passenger fee funding.The program was approved by voters in 2006 and advocates say the independent monitors have been instrumental in protecting Alaska from pollution.The Department of Environmental Conservation commissioner says the program is unnecessary and burdensome to the industry.He has proposed an automated monitoring system that does not rely on inspectors.The program’s head has resigned from the DEC and declined to be interviewed.The Associated Press read more