Papua New Guinea LNG Sells Cargo at $4/MmBtu

ExxonMobil’s Papua New Guinea LNG plant has reportedly sold a liquefied natural gas cargo at nearly $4 per million British thermal units for loading in April, potentially suggesting a price hike.

Citing four unnamed industry sources, Reuters reported on Thursday the 4.05 trillion British thermal units (TBtu) shipment will load on April 25. Details on the company buying on the spot market were not disclosed, Kallanish Energy notes.

Earlier in the week, Vitol sold a 3.3-3.5 TBtu cargo to Diamond Gas International at $3.60/MmBtu, according to Platts data.

The price difference doesn’t necessarily means a jump in price of nearly 40 cents or 11%, as larger cargoes usually command a premium. But the sources believe LNG demand in China is improving and could increase spot prices.

The perfect storm of oversupply and collapse in demand has recently set LNG prices to historic lows, with Asian spot prices falling to as low as $2/MmBtu.