Robust global demand combined with little new supply coming online until late 2014, should keep LNG prices elevated through summer, at around $14 to $16 MMBTU, according to Bank of America Merill Lynch (BofAML).
The risk to prices this summer will remain skewed to the upside, as Japan will stay reliant on LNG imports to meet summer power demand.

Nuclear power restarts are expected to begin slowly in second half of 2014, rising to 9GW by the end of 2014, 18GW by end of 2015.

The turmoil in Ukraine puts upside risk to LNG prices. "Should Europe need to ramp up LNG imports, it wuld severely tighten the global LNG market and potentially push near-term Asia spot LNG prices again above parity levels., BofAML report said.

LNG supplies could remain tight in next six to welve months but longer term LNG balances are set to weaken.

"As Japan’s LNG demand softens, Australia will likely add 10-16 mtpa each year in 2015-17, and US LNG export growth will come in full force in 2017. Construction at the first export terminal, the Sabine Pass, is halfway done, adding 1.8 mtpa in 2016. Exports will rise rapidly to 14 mtpa in 2017, as more terminals ramp up. A total of 6 projects have obtained approval, amounting to 62 mtpa (or 8.3 bcf/d) by 2020. Even then, a looser LNG balance will not completely kill prices, as US exports don’t come cheap, and Australian costs are even higher, at $13-14/MMBtu. Thus, we see a soft floor at high levels for global LNG prices, even after this period of extreme tightness."
Source: Bank of America Merill Lynch (BofAML)