Looking forward as well Platts is reporting $10.55 JKM price for March deliveries, which shows this Winter surge is pushing out into later months.
It is a strong sign at the moment that the LNG markets are currently not in surplus, and that there is a wave of demand out there that could soak up the expected increase in production in 2018 that is coming on line. With oil now seemingly settled at around $70, OPEC and non-OPEC reiterating cooperation to support the price of oil in 2018 and into next year and the IMF expecting 3.9% global growth in 2018/19 that can only support the demand for oil/gas and commodities in general the global macro environment is as good as it was in 2015 when we were trading a lot higher.
Its up to management to use this to sign BTAs, simple as that.
Platts JKM for Mar LNG cargo deliveries up on firm NE Asian demand, supply uncertainty
Singapore (Platts)--19 Jan 2018 833 am EST/1333 GMT
Platts JKM for LNG cargo deliveries in March, the new front month, extended gains through the week to end at $10.55/MMBtu, on persistent demand from Northeast Asia and expectations of end-users replenishing stocks post-winter.
The prompt market saw continued support from ongoing supply disruptions as well as buyers paying up to secure marginal cargoes left in the market amid thin availability.
Australia Pacific LNG was heard to have concluded its sell tender offering a February 4 loading cargo at around $11.85/MMBtu for delivery into Northeast Asia.
End-users who were seeking to avoid the February market might come back and drive demand for March, sources said. The March market has seen emerging buy interest from Northeast Asian and South Asian end-users.
Tohoku Electric was heard to have issued a buy tender seeking a March 18-22 delivery cargo, closing January 22, with bids valid until January 24.
India Oil Corp. (IOC) was heard to have issued a buy tender seeking a March 2 delivery cargo, closing January 23, with a January 24 validity date. BPCL has also issued a buy tender seeking a March delivery cargo, closing January 22, and validity until January 24.
In the Atlantic, feedgas flows to Cheniere's Sabine Pass facility returned to normal levels at the start of the week, according to S&P Global Platts Analytics.
Participants reported limited market impact from the reduction in feedgas levels that lasted for 11 days.
Elsewhere, Angola LNG has returned from a production halt earlier in the month, after the cancellation of its latest tender offering a January 10-11 loading cargo.
However, there are still supply uncertainties as participants kept a close eye on production issues at Malaysia's Bintulu and Russia's Sakhalin.
The Bintulu LNG project could prolong maintenance by up to a month to repair a pipeline gas leak, several sources said. Malaysia's Petronas was heard to be in the market, securing up to two February cargoes, likely as replacement cargoes for affected production.
LNG Price at posting:
62.0¢ Sentiment: Hold Disclosure: Held
