MILAN, Aug 5 (Reuters) - Asian spot liquefied natural gas (LNG) prices fell this week as new supply from Russia’s Sakhalin plant and weakening demand from Egypt helped snap a months-long rally.
Prices for September delivery fell sharply to around $5.80 per million British thermal units (mmBtu) from $6.15 per mmBtu last week, also reflecting relatively low crude oil prices compared with recent months.
Russia’s Sakhalin II plant is tendering to sell three cargoes loading in September and one in October, relieving supply constrained markets.
In Egypt, state-run Egas came out looking for eight instead of the expected 16 cargoes for delivery in Sept-Dec, further loosening outlooks for the month ahead.
However, global output during September remains somewhat constrained by planned outages at the Chevron Chevron-led Angola LNG project and Cheniere Energy’s first production line at Sabine Pass - both of which will be offline for repairs and testing.
Angola LNG entered a longer-than-expected maintenance period several weeks ago. Sabine Pass maintenance will happen in September only.
Tempering any drop in supply was the resumption of exports from the Chevron-operated Gorgon facility in Australia on Monday - only its third-ever shipment following a series of shutdowns.
The second LNG vessel from the United States entered the expanded Panama Canal this week on its way to the Pacific Ocean. The Maran Gas Delphi vessel follows the Maran Gas Appolonia last week - both cargoes loaded up at Sabine Pass.
The second production line at Sabine Pass has started and its first cargo is expected to be loaded imminently, according to LNG trading analysis firm Kpler.
Kpler also said Italy’s LNG import terminal at Rovigo came to a halt on July 30 for unplanned maintenance.
Reporting by Oleg Vukmanovic; Editing by David Evans