Singapore — S&P Global Platts JKM for LNG cargoes to be delivered in April ended the week at $5.95/MMBtu, a $0.225/MMBtu fall from last Friday, on greater supply visibility from two large-scale liquefaction projects in US and Australia.
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Train two of the Gorgon project in Western Australia resumed production last week, following a shutdown for "minor" maintenance.
In addition, Gorgon train three should start-up very soon, according to market sources.
One source said he was confident it will start producing in "very, very likely to be early Q2."
A Chevron spokesman declined to comment.
Higher train two output, as well as an earlier-than-expected train three startup, would pressure prices in Asia, sources said.
The Cheniere-operated Sabine Pass in the US project is also currently commissioning its train 3 which is expected to start up this month.
Also, Angola LNG launched a single-cargo DES sell tender on Monday, for early-March delivery, which closed on Thursday.
But some end-user demand stopped further price losses late in the week with at least two tenders floated by Asian end-users reported awarded this week.
Buy tenders were floated by Kansai Electric and Indian Oil Corporation this week. Tohoku Electric was heard to be also searching for an April cargo, although this could not be fully verified.
Both GAIL and PTT were said to have bought a cargo for first-half April each, at close to $6/MMBtu.
SK was also heard to have done a spot purchase for two cargoes earlier this week for April delivery, with various sources saying the final deal price for both cargoes was in the low-$6s/MMBtu. Sources from SK were unavailable for comment.
Summer demand for cargoes could also support prices for deliveries further down the curve, sources said.
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