Atlantic LNG exports to Asia to set record in March

By Joe Silha

NEW YORK, March 14 (Reuters) - Exports of liquefied natural gas from the Atlantic Basin to the Far East are on track to hit record highs in March, backed by continued strong demand from Japan and South Korea, according to a Houston consulting firm.

Waterborne Energy, which monitors the global flow of liquefied gases, said in a report this week that Atlantic Basin LNG exports to Asia should hit an all-time high of 1.6 million tons this month, eclipsing the previous monthly record of 1.482 million tons set in December 2007.

The bulk of the shipments went to Japan and South Korea, with the largest portion of Atlantic supply coming from Egypt.

Trinidad, Equatorial Guinea, Norway and Algeria supplied the rest of the Atlantic Basin product.

In 2007, total shipments of LNG to the Far East hit a record high of more than 112 million tonnes, up 10 percent from 2006, according to Waterborne Energy data.

Asia has been the destination of choice for spot LNG supplies this heating season as prices in countries like Japan and South Korea at times topped $20 per mmBtu and hovered in the mid- to high-teens for most of winter, or more than double the levels seen in the United States and Britain.

Japan led the way last year, importing nearly 67 million tonnes of LNG, while South Korea came in second with about 26 million tonnes. The rest of Asia (India, China and Taiwan) imported nearly 20 million tonnes in 2007, Waterborne said.

Japan, which was already the world's largest LNG buyer, has seen even stronger demand for the super-cooled gas since last summer when an earthquake shut the country's largest nuclear plant, forcing utilities to use other fuels to generate power.