The drop on last year’s value is still better than the JKM for November, which was down by 53.5 per cent when compared to 2014. Talking to Gas Today, Stephanie Wilson, managing editor at Platts, explained “The LNG spot price has been declining all year as the market starts to rebalance following the impact of the Fukushima disaster which resulted in extremely high prices. The advent of new supply from PNG and Australia in the earlier part of the year put downward pressure on
prices, as did the relatively mild weather we’ve seen throughout northeast Asia the last few summers/winters. So in that sense, the year on year drop is not so surprising.”
The latest Platt figures state that the price of possible competing fuels such as thermal coal and fuel oil were also down. Thermal coal was lower by 3.2 per cent on a month-on-month basis, while fuel oil was down by 0.8 per cent month over month during the 16 October to 13 November assessment period.