LNG WORLD MARKET UPDATE  
August 3, 2016
Welcome to the inaugural weekly LNG market report issued by the Alaska Gasline Development Corporation. This report includes news articles that highlight market activities within the global LNG industry including up-to-date metrics on Henry Hub and LNG import pricing. The weekly news blast is intended to provide relevant industry information to Alaskan stakeholders and inform audiences of the competitive landscape in the global LNG market. Subscription options for this report are available at the bottom of this email. Please contact Leah Levinton at llevinton@agdc.us with questions.
Natural Gas
HH Spot Price
$2.87
August 1 close
 
Weekly Change
$0.04  (1.8%) 
 
Trend
Source: DOR
LNG Import Price
Japan
$6.25
June 2016
 
Monthly Change
$0.00  (0%) 
 
Trend
Source: World Bank
(Nikkei Asian Review; August 1) - Energy companies in the U.S. and Europe have begun investing into the Asia-Pacific region to tap a growing market. Asia accounts for three-quarters of global LNG demand and consumption is expected to grow. As the industry moves toward consolidation amid a downturn in crude prices, energy giants are announcing major deals such as Exxon's purchase of Papua New Guinea's natural gas explorer InterOil, BP's expansion of the Tangguh LNG project in Indonesia, and a $36.8 billion investment in Kazakhstan by Chevron and partners.
(Bloomberg, July 31) - Tokyo Gas, Japan's second-biggest liquefied natural gas (LNG) buyer, is talking to European companies to swap cargoes it owns from the U.S., with those in Asia, in order to reduce costs and shipping times. The utility is offering cargoes from the Cove Point (Maryland) project on the U.S. East Coast, which is expected to come online in 2017, from which Tokyo Gas is contracted to buy 1.4 million tons of LNG annually.
(Bloomberg; July 28) - Oil group ExxonMobil is in advanced talks with Italian group ENI to buy a minority stake in new offshore natural gas discoveries in Mozambique. The U.S. oil major's participation would potentially accelerate development of one of the world's largest liquefied natural gas projects. ExxonMobil is also in talks with U.S. group Anadarko Petroleum to take a stake in Area 1 in the Rovuma basin in Mozambique.
Expanded Panama Canal Opens Premium Asian Markets to U.S. LNG
(Platts; July 28) - The first two LNG tankers recently passed through the newly expanded Panama Canal, marking a significant shift in global LNG shipping patterns. With the U.S. poised to become one of the world's top LNG exporters in the next five years, the expanded canal will decrease the overall cost and length of time needed for U.S. gas deliveries to reach major Asian importers.