The Platts JKM for March LNG deliveries fell by $0.65/MMBtu over the course of the week to $7.10/MMBtu, on continued weak North Asian demand, and results from a recent buy tender from Japan's Tohoku Electric, expected to set expectations for future deals to be lower.The highest bids for March were reported around $7/MMBtu, with offers falling to level below $7.50/MMBtu by the end of the week, with as many as seven-10 cargoes still heard available in the spot market for the month.

Demand in North Asia for February and March was minimal, following recent purchases from the only two utilities, Japan's Kyushu Electric and Tohoku Electric, who were earlier heard to have had a firm requirement for March spot cargoes.

Kyushu Electric had filled its requirement from a recent sell tender from Sakhalin LNG, after it was awarded a H1 March cargo in the high-$7s/MMBtu a week ago.

Likewise, Tohoku Electric was heard to have filled its demand through a different buy tender that closed this week, with multiple sources pegging its deal at $7-$7.20/MMBtu for March delivery.

The Tohoku tender price in the low-$7s/MMBtu would set a price point to guide any future deals, various sources said.

Remaining Japanese, Korean and Taiwanese buying interest was mostly limited, though some potential demand was heard in China, where a state-owned buyer was considering procurement from March onwards on behalf of third parties.

However, this would depend on delivery timing and storage availability at the terminals, the source said.

On the supply front, supply disruptions in the Middle East and Northern Europe did little to dent feelings that the market was well supplied, failing to provide support to prices in Asia.

Supply from Yemen's Balhaf liquefaction facility was disrupted following an evacuation and halt in exports since mid-January in response to political unrest in the region, sources said.

However, Yemen LNG had lifted its force majeure on exports from its Balhaf LNG plant, a source close to the company said Friday.

The facility was said to have lost two to four cargoes as a result of the shutdown, some of which had been scheduled for delivery to regular buyer Kogas.

Three LNG carriers are expected at the facility according to Platts shiptracking software cFlow Friday, including the Marib Spirit on January 30, the Seri Balhaf on February 7 and the Hyundai Ecopia on February 10.

Market participants had earlier said additional demand could emerge from the plant's offtakers, particularly from long-term buyer Kogas, if the suspension lasted for several weeks.

Operations at Norway's Snohvit LNG facility were halted Tuesday due to a gas leak, a spokesman for operator Statoil confirmed, but there were no indications or updates Friday as to how long the outage would continue.

Shipping day charter rates were also under downward pressure, with around 30 vessels looking for charters globally -- the bulk of which was available in the Asia Pacific basin, shipping sources said.

The Asia Pacific Day Rate dropped $4,000/day over the course of the week to end Friday at $60,000/day as a result.
Source: http://www.platts.com/latest-news/natural-gas/singapore/platts-japan-korea-marker-for-march-lng-deliveries-26996368