• 3 days Nuclear Bomb = Nuclear War: Saudi Arabia Will Develop Nuclear Bomb If Iran Does
  • 3 days Statoil Changes Name
  • 3 days Tillerson just sacked ... how will market react?
  • 2 days Russian hackers targeted American energy grid
  • 2 days Is $71 As Good As It Gets For Oil Bulls This Year?
  • 3 days Petrobras Narrows 2017 Loss, Net Debt Falls Below $85bn
  • 3 days Proton battery-alternative for lithium?
  • 3 days Ford Recalls 1.38 Million Vehicles (North America) For Loose Steering Wheel Bolt
  • 2 days Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 2 days Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 3 days I vote for Exxon
  • 2 days HAPPY RIG COUNT DAY!!
  • 3 days UK vs. Russia - Britain Expels 23 Russian Diplomats Over Chemical Attack On Ex-Spy.
  • 3 days Why is gold soooo boring?
  • 3 days South Korea Would Suspend Five Coal - Fire Power Plants.
  • 2 days Spotify to file $1 billion IPO
Colombia’s Fracking Dilemma

Colombia’s Fracking Dilemma

Fracking is quickly becoming a…

Gas Exporters Want Oil-Linked Prices

Gas Exporters Want Oil-Linked Prices

Natural gas exporters want to…

U.S. LNG Fleet Heads To Asia As Spot Prices Soar


With Asian LNG spot prices almost doubling in three months, a total of nine U.S. LNG cargoes are traveling to northeast Asia, the world’s top LNG demand destination, as the price surge is making U.S. shipment via the Panama Canal more profitable.

According to Platts and its trade flow software, Asian spot prices were $9.75/MMBtu on Tuesday, compared to $4/MMBtu in April 2016, and with around $5.50/MMBtu in the middle of September last year.

Prices have surged since September, due to issues and outages at liquefaction plants, including Gorgon in Australia.

The LNG spot price increase has now made the journey from Sabine Pass in the U.S. Gulf of Mexico to northeast Asia more attractive, after prices had been too low in the first half of 2016. Even after the extended Panama Canal started making the journey shorter, the U.S. LNG cargoes were not rushing to head to northeast Asia in July, August and September.

But in the past couple of months, Asian spot prices jumped considerably, by 27 percent since mid-November, to $9.20/MMBtu in mid-December. This was the largest monthly rise for Asian LNG since February of 2013.

Platts data showed that before December 2016, just one U.S. LNG ship out of 33 cargoes from Sabine Pass had set out for northeast Asia. But now, the surge in Asian spot prices have led to nine cargoes traveling from the U.S. en route to the world’s biggest LNG buyers: Japan, South Korea, China and Taiwan.

Related: Shrinking Contango Points To OPEC Deal Success

China received its second U.S. LNG shipping last month, and data by Platt’s cFlow software shows that the country would welcome “a number of the vessels currently headed to the region”.

Japan, which has not received U.S. shipment yet, is expected to get at least one of the vessels currently traveling to the region, according to Platts.

Since the U.S. started exporting LNG in February last year, cargoes out of Sabine Pass had been mostly heading to South America, the Middle East and South Asia, with South America being the top destination.

The U.S. became a net exporter of natural gas in mid-November 2016.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News