ICIS East Asia Index Hits Record High

The ICIS East Asia Index (EAX) March contract for physical LNG closed at $21.413/MMBtu on Friday, 15 February, marking the highest Asian spot LNG assessment recorded by ICIS.

ICIS LNG Analyst Simon Ellis said: “The near-term cause for the price rise has been competition from South America, as Brazil has purchased unprecedented levels of spot LNG to offset the fall in hydroelectric generation caused by a prolonged drought.“

“The tight market conditions have been exacerbated by unscheduled production problems at LNG plants, as well as the recommitment of spot LNG volumes to mid- and long-term contracts,” Ellis added.

ICIS’ March South America Index (SAX) reached a record $18.447/MMBtu on 15 February.

The ICIS DES (delivered ex-ship) Japan assessment was also assessed at a record high of $21.50/MMBtu on 15 February.

Prior to 2013, the ICIS DES Japan assessment was last quoted at more than $20.00/MMBtu on 5 September 2008.

ICIS Heren became the first price reporting agency to assess East Asian spot LNG prices in March 2008.

[mappress]
Source: ICIS, February 19, 2013