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Platts: November Asia LNG Spot Prices Rise for First Time in Four Months Platts JKM Falls 25% Year-on-Year on Weak Demand

SINGAPORE, Oct. 18, 2012 /PRNewswire/ -- Asia liquefied natural gas (LNG) spot prices for November-delivered shipments rose for the first month in four, gaining 0.3% to $13.005 per million British thermal units (/MMBtu) during the traditional winter stockpiling period, according to Platts Japan/Korea Marker (JKM) data. Platts is a leading global energy, petrochemicals and metals information provider and a premier source of benchmark price references.

The rise compares with a 4% month-on-month fall for October-delivered shipments, the data showed. Prices of LNG cargoes for November delivery fell 25% compared with the same month in 2011. The average Platts JKM price for November-delivered LNG cargoes reflects the monthly average of all daily JKM assessments published from September 16-October 15.

"Demand remained weak in North Asia even though November is a traditional stockpiling period in preparation for the peak winter demand," said Sarah Cottle, Platts editorial director, power. "Adequate inventories across the region kept the increase capped despite supply disruptions in Yemen and Nigeria."

The Platts JKM is an assessment of LNG prices for spot cargoes delivered to Japan and South Korea, based on the most recent trades and/or bids and offers from buyers and sellers in the open market prevailing at the close of the trading day. The monthly JKM assessments are month-ahead delivered prices and are an average of the daily JKM price assessments reported by Platts.

"Despite weak demand in Asia and Europe, drops in global supply caused by unplanned disruptions, maintenance and exporters producing less in order to support prices, have resulted in a slight increase in LNG spot prices," said Javier Diaz, energy analyst at Bentek Energy, a specialist in natural gas fundamental market data analysis, which was acquired by Platts in 2011.

Meanwhile, the prices of substitute fuels, thermal coal and fuel oil, which are burnt by Asian utilities, dropped 2% and 3% respectively for the month.

Platts Spot JKM and Substitute Fuel Prices (Monthly Averages)*


Nov-12

Nov-11

Oct-12

Year-On-Year Change %

Month-On-Month Change %


JKM ($/MMBtu)

13.00

17.25

12.97

-24.62

0.26


Qinhuangdao coal ($/MMBtu)

4.46

5.38

4.56

-16.99

-2.10


180 CST fuel oil ($/MMBtu)

16.99

16.97

17.59

0.09

-3.42


Source: Platts

Platts' monthly reports on Asia LNG prices and market developments are typically published shortly after the 15th of each month.

For more information on natural gas or the methodology used by Platts in its power assessments, visit the Platts website www.platts.com.

*Figures in the table are monthly averages of daily values assessed by Platts from September 16th to October 15th. Platts JKM rolls on the 16th of each calendar month

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals and metals information and a premier source of benchmark prices for the physical and futures markets. Platts' news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency. Customers in more than 150 countries benefit from Platts' coverage of the carbon emissionscoalelectricityoil, natural gasmetalsnuclear powerpetrochemical, and shipping markets.  A division of The McGraw-Hill Companies (NYSE: MHP), Platts is headquartered in New York with approximately 900 employees in more than 15 offices worldwide. Additional information is available at http://www.platts.com.

About The McGraw-Hill Companies: McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial's leading brands include Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

SOURCE Platts



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