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GLOBAL LNG-Prices edge lower as oil drops and production rises

Published 06/05/2017, 12:06 am
Updated 06/05/2017, 12:10 am
© Reuters.  GLOBAL LNG-Prices edge lower as oil drops and production rises
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By Oleg Vukmanovic and Mark Tay

LONDON/SINGAPORE, May 5 (Reuters) - Asian spot LNG prices fell this week on the back of rising production and lower oil prices while public holidays in Japan and South Korea kept a lid on trading activity, traders said.

Spot prices for June delivery fell to about $5.70 per million British thermal units (mmBtu), 10 cents below last week, aided by a sentiment-sapping decline in Brent crude oil prices to near five-month lows on Friday.

Benchmark Brent crude oil prices fell below $47 a barrel.

LNG fundamentals also looked weak, some traders said. Korea Gas Corp appears to have fully catered to its near-term demand via a recently concluded tender, having taken relatively little compared with past buying sprees. Meanwhile, production from the second line, or Train 2, at Chevron's Gorgon liquefaction plant in Australia has resumed after an outage.

Rising feedgas supplies into Cheniere Energy's Sabine Pass export plant indicates that Train 2 there is also resuming output after a shutdown last week, analysts said and data showed.

Thailand's PTT bought two June cargoes at a price estimated between $5.70 and $5.80 per mmBtu, several trade sources said. Gail India is seeking to buy three cargoes in the second half of 2017, across July, September and November.

On the supply side, ExxonMobil on Thursday closed a tender to sell a Gorgon cargo which may have already loaded onto the Beidou Star tanker, traders said. Angola launched a tender to sell a cargo loading in late June or early July, with bids due by Monday. by David Goodman)

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