The spot market price of liquefied natural gas (LNG) scheduled for June delivery to Asia averaged $17.423/MMBtu for the latest reporting month, according to Platts, marking a year-on-year jump of 39.9% versus this same period a year ago. The Platts LNG Japan Korea Marker (JKM) for June delivery averaged $17.423/MMBtu during the month of April 16-May 15, 2012, driven by high North Asian demand coupled with increasingly sparse summer supplies. For your convenience two articles are pasted below. You may quote from the articles in part or full with attribution to Platts. Don’t hesitate to contact Platts Communications if you have any questions or would like to interview a Platts expert.

The second article pasted below, “JKM'S PREMIUM TO NBP CROSSES $9/MMBTU ON STRONGER ASIAN BIDS,” indicates that as the new delivery month of July has just gotten underway for industry’s LNG deliveries to Asia, prices are running stronger in Asia than in Europe, driven by strong demand.

The Platts JKM, launched in February 2009, was the world’s first daily price assessment from an independent publisher for LNG delivered to Asia. Platts’ JKM assessment is utilized by industry as a leading indicator of spot Asian LNG prices. It is one of a suite of LNG price assessments published globally by Platts.

NG0635 Platts June LNG JKM jumps to $17.423/MMBtu on tight supply ahead of summer Singapore (Platts)--16May2012/551 am EDT/951 GMT

Platts June LNG Japan Korea Marker averaged $17.423/MMBtu over April 16-May 15, due to high North Asian demand coupled with sparse summer supplies.

The June average JKM was up 39.9% year-on-year.

June saw the highest average JKM since Platts began assessments in February 2009, beating the previous highest monthly average set last year for December-delivered cargoes into Japan and Korea.

The rising June prices are a result of pre-summer demand from North Asia to build LNG stockpiles ahead of summer. June is the month before Japan enters its peak summer power demand season, which typically spans July-September, when the weather has a direct impact on consumption of fuels used for thermal power generation, such as crude, fuel oil and LNG.

The last North Asian deal heard for June was done in early May for a February-delivered cargo bought by South Korea's GS Caltex around $18.30/MMBtu, various sources said, thought the deal was not confirmed by the parties involved.

The latest sell tender was from Indonesia's Tangguh LNG, which sources said issued a sell tender for three cargoes in June and one cargo in early July. The sell tender closed May 15, but the results were not yet known by late Wednesday.

Tags: Platts