Asian spot liquefied natural gas (LNG) prices declined for a third week on producers from Australia to Nigeria boosting spot supply, strong European LNG inventories and Pakistan’s cancellation of a six-cargo tender.

Spot prices for August LNG-AS delivery in Asia fell to $10.10 per million British thermal units (Btu), down 20 cents from the previous week, trade sources said. Nigeria LNG offered three July cargoes as its fifth production unit resumes this month.

Prices continued reversing from a 20-percent rally last month, driven by large concurrent global production outages and big-ticket tenders seeking more than 40 cargoes for July-September.

The market was not fully out of the woods as Malaysia’s giant Bintulu complex may have shut in some production for planned maintenance, traders said. The 30-million-tonne-per-annum, nine-train facility spent last month troubleshooting unexpected electrical faults that impeded output.

Source: Reuters

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