Global LNG-Asian spot prices flat in thin holiday trade

PERTH, Jan 3 (Reuters) - Asian spot LNG was steady in the mid-$18 per million British thermal units (mmBtu) range this week as minimal trade during the holiday period and waning winter demand capped prices.

Asian LNG prices LNG-AS were around the $18.50 per mmBtu during the past week, and are expected to drop in the coming months as winter buying concludes.

South Korea, the world's second largest LNG importer after Japan, said this week that the nuclear safety scandal which shut several of its reactors has forced the country to import 1.85 million tonnes more LNG on the spot market.

Three of South Korea's 23 nuclear reactors are currently offline. News Search ID:nL3N0KC1KM

As a result of the increased reliance on LNG, South Korea said it raised domestic natural gas prices by an average 5.8 percent. News Search ID:nL3N0KA0B2

Japan's LNG imports were 8.3 percent higher in November compared with the same month last year, but year-to-date figures showed that imports were down 0.3 percent as the country scales back its use of LNG in favour of coal. News Search ID:nEMS4ATD7Z

In China, November LNG imports jumped nearly 25 percent year on year as the country's demand for the fuel increases. Year-to-date imports were up 21 percent. News Search ID:nEAP001306

On the supply side, Indonesia said this week that its LNG production is set to rise nearly 6 percent in 2014, but with domestic needs higher, the country will keep exports steady at 268 cargoes for the year. News Search ID:nL3N0KC15Y

Algeria's Sonatrach has lifted a temporary force majeure on exports from its Arzew LNG plant.

The company plans to start partial maintenance at its two currently active plants in March 2014, when a third plant, currently under construction, comes online.

(Reporting by Rebekah Kebede in Perth; Editing by Tom Hogue)

((rebekah.kebede@thomsonreuters.com)(Mobile: +61 402 974 273 Reuters Messaging: rebekah.kebede.thomsonreuters.com@reuters.net))

Keywords: MARKETS LNG/