Asian prices of liquefied natural gas were flat at just over $15 per million British thermal units (mmBtu) this week as buyers held ample inventories.
Buyers mostly have the LNG stockpiles they need for May and are staying out of the spot market as the winter draws to a close, one market source said.
Utilities in Japan used 6.3% less natural gas in March than a year earlier as reduced heating demand and energy-saving measures helped to curb power generation.
LNG purchases by Tokyo Electric Power (Tepco), Japan’s biggest regional utility, slid 3.6% in March from March 2012.
Demand may pick up in coming months, however, because the weather in Japan, the world’s largest LNG importer, is expected to be mostly warmer than average from April to June, which could increase the demand for electricity for cooling.
South Korea’s state-run Korea Gas Corp (Kogas) said its domestic gas sales in March fell 3.5% year on year.
Demand remained fairly robust in the Americas, with a raft of recent tenders, making up for reduced arbitrage opportunities for shipments between the Atlantic and Pacific markets as prices converged.
Argentina launched a fourth tender to buy 10 LNG cargoes to be delivered between July and December.
In a previous tender, it secured no more than 14 cargoes out of a target of 24 for May-August delivery.
Mexico is collecting offers for a tender for around 31 LNG cargoes from mid-2013 through 2014 and is expected to make a decision on some of those deliveries later this month, sources said.
European interest for seaborne gas diminished as the onset of warmer weather sapped demand, following the coldest March in half a century in Britain, where rising prices attracted cargoes from Qatar, Algeria and Trinidad.
Prices have since dropped back to levels typical for the time of year towards around $10/mmBtu, from around $15/mmBtu in March.
British short-term gas prices have declined for the most part as fresh supplies and forecasts of warmer weather and reduced consumption have eased recent concerns over supply shortages.
In the US, natural gas futures rose nearly 2% early on Friday, reaching their highest mark in more than 20 months as supply tightened and cold weather returned to some areas late this week.
