GLOBAL LNG-Prices jump on international purchase tenders …
Asian spot liquefied natural gas (LNG) prices for December delivery rose this week as countries from India to Mexico and Kuwait lined up to get a hold of near-term shipments. The price of LNG for December delivery was £6.80 per million British thermal units (mmBtu), up around 25 cents from a week earlier. Egypt is said to be preparing to launch a tender this weekend seeking 96 cargoes with an additional 12 optional cargoes for delivery in 2017 and 2018, several sources said, although the information could not be immediately confirmed.
“They are already talking to some of their existing suppliers about this tender,” a trading source said. Initial statements from Egypt Natural Gas Holding officials last week suggested the country would be seeking roughly half that number of cargoes just for 2017 delivery. Participants also focused on Korea Gas Corp’s recent tender for four cargoes over the winter which may be awarded next week.
South Korean demand is seen as a potentially key determinant of winter spot LNG prices in Asia given the country has to replace so much lost nuclear output caused by last month’s earthquake. Mexico, meanwhile, is adding to demand by seeking two cargoes for November, with Indian Oil Corp also after two cargoes in December, and Kuwait hoping for one mid-December delivery. On supply, Abu Dhabi has finalised the sale of a November cargo.
There are currently 63 uncommitted LNG cargoes for 2017 delivery from Indonesia’s Tangguh and Bontang projects, Wiratmaja Puja, the country’s Director General of Oil and Gas, said on Thursday.
Qatargas, the world’s largest LNG producer, signed a five-year sales and purchase agreement with Petronas LNG UK, expanding a strategic import deal to Europe in the face of a looming global glut of gas supplies.
Source: Reuters (Additional reporting by Mark Tay in Singapore; Editing by David Evans)