January 8, 2016 / 5:50 PM / 3 years ago

GLOBAL LNG-Prices slip on weak winter demand, global glut of supplies

* Limited LNG demand seen from China, Argentina

* Standard Life to vote against Shell’s takeover of BG Group

LONDON, Jan 8 (Reuters) - Asian liquefied natural gas (LNG) prices fell further this week amid a global supply glut, extending 2015’s trend, despite pockets of fresh demand from China and Argentina.

The price of Asian spot cargoes for February delivery was pegged at $6.50 per million British thermal units (mmBtu), down from $6.90 at the end of last year. Traders said prices for March were even lower, with one trader saying prices for summer months have fallen below $5.00.

“LNG has been falling off a cliff the last few weeks,” one trader said.

A wave of LNG set to hit the market from new projects in the U.S. and Australia, along with falling oil prices, kept sentiment bearish despite some fresh demand from China, which purchased some cargoes to meet demand driven by colder weather, and Argentina’s tender to buy nine cargoes for January to March delivery.

Oil prices plunged to 12-year lows on Thursday after China allowed its yuan currency to slip, sending stock markets tumbling globally.

Amid a global supply glut of LNG, U.S.-based Cheniere Energy is set to load its first cargo next week, the first U.S. export of LNG, as domestic drilling booms.

Also on the supply side, the Australia Pacific LNG (APLNG) project delayed its first commercial cargo, racking up costs for China’s Sinopec Corp, which has had a tanker waiting to load for more than two weeks.

Traders said the cause of the delay was not clear.

Royal Dutch Shell’s $49 billion acquisition of BG Group, creating the world’s largest LNG shipper, is facing resistance from Shell shareholders with Standard Life saying it will vote against the acquisition. (Reporting by Sarah McFarlane; Editing by Katharine Houreld)

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