Latin American nations are enjoying softening prices for LNG as the cold winter ends and Europe remains well supplied with the super-chilled fuel.
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September delivered ex-ship (DES) prices to Argentina were $10.28/MMBtu on Tuesday (Aug. 19), down slightly on the day and about $2.00 lower from where prompt-month prices were at the start of the southern hemisphere’s winter. DES prices for September at the Pecém terminal in Brazil were $10.09, while in Chile’s Quintero they were $10.37.
DES prices are NGI’s cost-plus formulations based on natural gas benchmark prices from the supplying country, such as the United States or Trinidad and Tobago. They also factor in shipping costs to Latin America. Some volumes to Latin America are also re-routed from Europe.