PERTH/LONDON: Latin American demand for liquefied natural gas (LNG) continued to dominate the global spot market this week, with Mexico's monthly LNG imports expected to hit a seven-year high in May.
Mexico's state-run power monopoly CFE will buy 18 LNG cargoes from energy trader Trafigura due to be shipped in 2013 and 2014 as piped natural gas supply from the United States fails to keep up with demand.
"Mexico will have to compete with Argentina and Brazil for spot LNG volumes, since these countries also purchase LNG volumes on a month-to-month basis," Waterborne LNG analysts said.
They see prices in the region between $15 and $17 per million British thermal units (mmBtu) over the next few months.
CFE has launched a tender for around 30 cargoes in 2013 and 2014, while Argentina launched a tender for seven cargoes for the second half of the year.
Argentina bought two cargoes this month for between $16.25 and $16.80 per million British thermal units (mmBtu), remaining within the range seen since April.
Asian LNG prices have also remained steady, in the $14.20 per mmBtu range.
Utilities in Japan, the world's top importer of LNG, consumed less natural gas in April than a year earlier as power generation fell due to power saving.
LNG imports into South Korea, the world's No.2 LNG importer, rose 29.3 percent to 3.5 million tonnes in April from a year earlier, while state-run KoreaGas Corp's domestic gas sales rose 10.3 percent.
In the Atlantic market, Royal Dutch Shell declared force majeure on gas supplies to the Nigerian LNG export terminal following a leak.
Spain cancelled two re-export cargoes, in a possible reaction to lower Nigerian supplies. (Reuters)
