MARKET INSIGHT: Asia's Spot Whimper

摘要

The Asian LNG spot market kicked off 2009 with a whimper. Spot sales continue to dwindle, market players say, and Asia may well receive only six to eight nonterm cargoes in January, consisting mainly of prearranged, short-term supply secured by Tokyo Electric Power Co. (Tepco) and Korea Gas (Kogas) for the next two months. No other demand is expected from Japanese or Korean buyers this month. A gas analyst says spot prices in the region have plunged to 7-8 per million Btu on a delivered basis, although a Japanese trader says he was offered African cargoes for delivery next month at around 11-12/MMBtu. The trader added that he would not go above 8/MMBtu, perhaps confirming the analyst's claim about the price level at which deals can actually be done.