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Petroleum Devolopments
Volume 42 Issue 10
Aug.
2015 Sept. Oct. Nov. Dec. Jan.
2016 Feb. Mar. Apr.
2016 May June July Aug.
Natural Gas (2) 2.8 2.7 2.3 2.1 1.9 2.3 2.0 1.7 1.9 1.9 2.6 2.8 2.8
WTI Crude (3) 7.4 7.8 8.0 7.4 6.4 5.4 5.2 6.5 7.1 8.1 8.4 7.7 7.7
1. British Thermal Unit.
2. Henry Hub spot price.
3. WTI – West Texas Intermediate Crude oil price, in dollars per barrel, is converted to dollar per million BTU using a conversion factor
of 5.80 million BTU/bbl.
Source:
Table 5 Henry Hub Natural Gas, WTI Crude Average, and Low Sulfur Fuel Oil Spot Prices, 2015-2016 ( Million BTU1)
II. The Natural Gas Market
1- Spot and Future Prices of Natural Gas in US market
The monthly average of spot natural gas price at the Henry Hub in August
2016 remained stable at the same previous month level of $2.82/ million BTU.
The comparison, shown in table (5), between natural gas prices and the
WTI crude reveal differential of $4.9/ million BTU in favor of WTI crude.
2- LNG Markets in North East Asia
The following paragraphs review the developments in LNG Markets
in North East Asia, concerning prices and Japanese, Chinese and South
Korean imports of LNG and their sources, and Spot LNG Exporters
Netbacks.
2.1. LNG Prices
In July 2016, the price of Japanese LNG imports increased by $0.3/million
BTU comparing with the previous month to reach $6.3/ million BTU, the price
of Korean LNG imports increased by $0.2/million BTU comparing with the
previous month to reach $5.9/ million BTU, whereas the price of Chinese
LNG imports decreased by $0.6/million BTU comparing with the previous
month to reach $5.4/ million BTU.
2.2. LNG Imports
Total Japanese, Korean and Chinese LNG imports from various sources,
decreased by 7.8% or 841 thousand tons from the previous month level to
reach 9.982 million tons.
Table (6) shows the prices and quantities of LNG imported by Japan, South
Korea, and China for the period 2014-2016.