LNG Prices Climb on Limited Supply
Asian spot liquefied natural gas (LNG) prices rose this week to their highest since February as buying interest from China remained firm and as supply is expected to be limited during maintenance in August.Spot prices for July delivery in Asia were at $9.60 per million British thermal units (Btu) this week, gaining 40 cents from the previous week and are at the highest for this time of the year since 2014.Higher oil prices had been deterring some buyers from snapping up cargoes in the spot market in recent weeks but some of them may now need to cover their requirements promptly…
Argentina Seeks 22 LNG Cargoes
Argentina's state-run Enarsa launches tender to buy 22 liquefied natural gas (LNG) cargoes for delivery from May to August for delivery to its two import terminals, trade sources said. Enarsa seeks nine full-size cargoes for its Bahia Blanca terminal and 13 half-size deliveries to its river terminal at Escobar. Bids must be submitted on or before March 6 and pricing must be based on either U.S. Henry Hub or Brent crude oil. Escobar shipments cannot take tankers with a capacity of more than 90,000 cubic metres of LNG due to shallow water conditions.
Asian Spot LNG Prices Slip on Weak Demand
Asian spot LNG prices fell this week on poor demand from major gas-consuming regions despite a slew of new purchase tenders. The May spot LNG contract fell by $0.25 cents to $5.40 per million British thermal units (mmBtu), with new production coming on stream in Australia and the United States. Analysts and traders mainly blamed low demand for driving prices lower. In the Middle East, Abu Dhabi was staying on the sidelines of the market and new solar power capacity in Dubai was eroding gas demand there.
Argentina Awards LNG Tenders to Trafigura
Argentina's state-run energy company Enarsa awarded most of its liquefied natural gas (LNG) purchase tender for a portion of its 2017 needs to trading house Trafigura, trade sources said. Under the tender launched in January seeking 16 cargoes, Trafigura will supply 11, while rival trader Glencore and U.S. producer Cheniere will provide three and two shipments, respectively, the sources said. Supplies are for delivery between April and August. Transaction levels fetched a premium to gas prices at the UK's National Balancing Point trading hub…
Oversupplied Japanese LNG Players to Sell off Excess Volumes
Asian spot LNG prices extended losses this week as oversupplied Japanese utilities sought to offload cargoes and as key European gas benchmarks softened. Asian prices for LNG delivery in March fell 25 cents to about $7.75 per million British thermal units (mmBtu), traders said, ranging from $8/mmBtu to about $7.60/mmBtu. Prices tailed off even more sharply into April, currently trading at around the $7/mmBtu mark, they said. One trader said utilities in Japan "have overbought due to warmer than average temperatures at the end of 2016 and the current cold spell doesn't look like it will last…
LNG Prices Rise as South Korea to Wrap Up Major Tender Award
Asian spot liquefied natural gas (LNG) prices rose this week as strong expected demand from South Korea added to appetite from India and Taiwan, while supply from the United States was slow to return from maintenance. The price of LNG for December delivery was $6.95 per million British thermal units (mmBtu), up around 15 cents from a week earlier. Attention was on a tender by Korea Gas Corp which has by all accounts exceeded its initial scope and drawn bids by 25 companies offering to supply around 50 cargoes in total - even though it only advertised demand for four shipments.
Argentina Reworks LNG Import Deals
Argentina is diverting or cancelling incoming shipments of liquefied natural gas (LNG) after mild late winter temperatures curbed fuel demand and forced state-run buyer Enarsa to rework some deals. South America's biggest LNG importer launched back-to-back tenders in June and July after a cold start to winter, lining up dozens of cargoes at bargain prices as global output continued to outpace demand. But a milder streak in August has undercut demand for heating fuel and left state-run LNG importer Enarsa juggling a supply overhang, according to trading sources. Enarsa and Argentina's energy ministry declined to comment.
Argentina buys 8 LNG Cargoes
Argentina's state-run Enarsa has purchased liquefied natural gas (LNG) supplies from companies including Trafigura, Royal Dutch Shell, BP , Petrobras and Gas Natural as part of its latest tender, trade sources said. Eight of the nine cargoes sought in the tender were awarded, covering deliveries for September and October, traders said. Trafigura and Shell will supply two cargoes each, while Brazil's state-run Petrobras, BP and Spain's Gas Natural were also among the winners, trade sources said. (Reporting by Oleg Vukmanovic
Argentina Buys 6 LNG Cargoes
Argentina's state-run energy firm Enarsa has purchased six liquefied natural gas (LNG) cargoes as part of a recent tender from Vitol, Gunvor, Trafigura and Iberdrola, trade sources said. Vitol will deliver three cargoes in total, with two heading for the Bahia Blanca terminal and one earmarked for Escobar's river-terminal on the Parana River, traders said. Trafigura and Gunvor will deliver one cargo apiece to Bahia Blanca, with Iberdrola sending one cargo to Escobar, they said. Transaction levels for all cargoes were concluded above $6 per million British thermal units (mmBtu)…
Chile to Begin Gas Exports to Argentina
Chile will begin sending liquefied natural gas to Argentina this week in significant quantities for the first time, supplier Engie told Reuters, as trade relations warm between the two South American neighbors. The regional arm of France's Engie said it would sell around 85 million cubic meters of natural gas to Argentina in a contract to meet demand during the southern hemisphere's upcoming winter. Chilean state producer ENAP and Argentine state producer ENARSA have been in negotiations in recent months to seal a deal…
India Takes Nigerian Oil Despite Shipping Concerns
India's HPCL awarded another tender to buy with Nigerian crude oil despite its concerns about shipping from the West African nation. The refiner awarded a tender to buy November loading oil to Chevron, traders said, likely with Usan crude oil and either Agbami or Brass. On Monday, HPCL said it had not yet been able to fix a vessel to load Nigeria's Qua Iboe crude oil for October loading, and warned it would carefully weigh any future purchases. Indian refiners have proved particularly enthusiastic buyers of West Africa crude this week, both via tenders and some spot purchases.
W. Africa Crude: Tenders Brighten Dull Market
Tender deals helped to liven up a lacklustre West African crude oil market on Thursday, though overall demand remained weak. Indian Oil Corporation bought four cargoes of West African oil, traders said, nibbling at an overhang of unsold September cargoes just a few days before Angola's October loading programme comes to market. Traders were watching to see whether there could be an impact on Chinese imports of West African oil after two huge explosions in the northeast Chinese port city of Tianjin killed at least 50 people, including at least a dozen fire fighters.
Asian LNG Spot Climbs as Jordan, Pakistan Buy
Asian liquefied natural gas (LNG) spot prices for September delivery were higher on Friday supported by nearby demand from new importers including Jordan and Pakistan, traders said. The price of Asian spot cargoes rose to $8.10 per million British thermal units (mmBtu), from $7.80 the previous week. "(It's) just unexpected demand with very short lead times," said a trader. Jordan is expected to announce results of a tender for two cargoes for delivery in early September on July 29, while Pakistan has held several tenders to buy at short notice.
LNG Spot Prices Drop; Demand Dips from Brazil, Japan
Asian spot liquefied natural gas (LNG) fell this week as demand from Brazil's Petrobras slackened and top Japanese buyers switched to cheaper fuels and relied more on supplies under long-term deals. Prices for April delivery dropped to around $18.10 per million British thermal units (mmBtu) from $19.60 per mmBtu last week. Petrobras, a major Atlantic Basin LNG buyer in recent weeks, withdrew from the global spot market after rainfall boosted Brazil's hydroelectric reserves and cut demand for gas-fired power generation, traders said.
