Spot LNG Prices in Asia Retreat from Five-Month Highs as Fears of Strike Recede

SEATTLE (Oil Monster): The spot prices of liquefied natural gas (LNG) in Asian region declined from their five-month highs as fears of a potential strike receded. The workers at Woodside Energy dismissed the possibility of a strike. It must be noted that the market has been witnessing high volatility during the past few days.

The northeast Asia LNG for October delivery averaged at $13.00 per million British thermal units (mmBtu), falling from $14.00 during the week prior to this.

The markets were badly impacted by news of potential strikes at Woodside and Chevron facilities, which together account for almost one-tenth of the global LNG supplies. However, offshore LNG workers ratified a preliminary deal between the unions and Woodside, thus averting a potential strike action. The finalization of the agreement between Woodside and unions brought down the prices, which had risen sharply earlier in the week.

Meantime, the downstream workers unions at Chevron’s Gorgon and Wheatstone projects in Australia have voted to authorize a strike. The uncertainty with regards to Chevron facilities still looms as the two projects together represents nearly 5% of the global LNG production capacity.

On the whole, the easing of strike fears has provided some sort of stability to the Asian LNG prices.