The Platts JKM for May LNG averaged $5.454/MMBtu over the March 16 to April 13 assessment period, down 10.3% from the previous month.
Oversupply concerns added to the downward pressure earlier in the assessment period but following supply outages at the Pacific Basin's Sakhalin 2 and Gorgon projects, it recouped some of the losses. Higher oil prices also helped provide support.
UK National Balancing Point hub front-month gas futures averaged $4.977/MMBtu over the JKM May assessment period and the JKM-NBP spread narrowed to $0.488/MMBtu from $0.630/MMBtu a month earlier.
Production at the Sakhalin-2 LNG plant was suspended after an accident at one of its platforms.
Sources said Japanese utilities with long-term volumes tied to the Sakhalin and Chevron-operated Gorgon projects were encouraged to pick up some shipments in case of long cargo delays and continued cold weather at home.
Sporadic demand was also observed from South Korea and India.
India's IOC issued a two-cargo buy tender for H1 and H2 June while its peer Gail also launched a tender looking for an early May cargo. In South Korea, SK E&S was looking for at least two May cargoes.
In Asia, some end-users were said to have relatively low stocks and so might look for spot cargoes, although it was not clear how firm their requirements would be.
In the Atlantic, production at Angola LNG appeared robust and since March 27, Angola has launched four tenders.
Supply was ample in the Atlantic, thanks to volumes from the Sabine Pass liquefaction project on the US Gulf Coast, although traders said not many of them had been directed to Asia as yet.
In the Middle East, Egypt's Egas was said to be trying to defer 2017 cargoes to 2018 due to increased domestic gas production, particularly from the North Alexandria Concession controlled by BP.
The number of cargoes that would be affected was unclear, with sources saying that 10 to more than 20 cargoes would be rolled into next year.
ALTERNATIVE FUELS
In the US, front-month NYMEX Henry Hub gas futures averaged $3.129/MMBtu, surging 62.7% year on year and up 10.9% month on month.
Platts FOB Qinhuangdao coal averaged $3.870/MMBtu over the same period, up 48.3% from a year ago and 8.3% from the previous month.
Platts FOB Singapore 180 CST fuel oil saw a 4.5% drop over the period, averaging $7.774/MMBtu.
This was, however, a gain of 65.8% year on year. Oil prices often impact the competitiveness of spot LNG, particularly in South Asia which is sensitive to the price of oil versus LNG.
