Article below gives some insite into LNG and what it is worth.
China's May LNG import volume and cost retreat from April peak
China imported two cargoes of LNG totaling 119,183 mt in May, down from
the previous month's record of 301,960 mt, latest customs data showed.
The import cost of the two May cargoes averaged $163.90/mt ($3.15/MMBtu)
on a delivered basis, in line with the contractual price for term shipments
from Australia's North West Shelf venture. China did not buy any cargoes from
other suppliers in May.
The May import cost was down sharply from the average price of
$4.18/MMBtu that China paid in April, when both the average cost and import
volume peaked on the back of a spot shipment it picked up at market prices.
In April, China took delivery of its first spot LNG shipment since its
maiden Guangdong terminal started operations last year. The spot cargo of
59,291 mt from Oman, sold to China by Japanese trader Mitsubishi, cost
$435.25/mt ($8.37/MMBtu), more than double the price China has been paying for
its term imports from Australia.
China subsequently struck deals for two more spot cargoes, both from
Algeria. One of the cargoes arrived late last month and the other is due for
delivery at the end of this month.
CHINA'S MONTHLY LNG IMPORTS
2007 Volume (mt) Import Cost ($) Unit Cost ($/mt) Unit Cost ($/MMBtu)
Jan 119,370 19,623,755 164.39 3.16
Feb 182,210 30,024,726 164.78 3.17
Mar 119,241 19,559,478 164.03 3.15
Apr 301,960 65,688,497 217.54 4.18
May 119,183 19,534,458 163.90 3.15
Jan-May 841,964 154,430,914 183.42 3.53
-- KimFeng Wong, [email protected]