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Asian prices steady on ample supply despite U.S. cargo cancellations

Asian spot LNG prices remained steady this week on a continued stream of spot supply even though traders continued to cancel cargoes loading from the United States due to poor economics.

The average LNG price for August delivery into northeast Asia LNG-AS was estimated to be about $2.20 per million British thermal units (mmBtu), slightly lower than the previous week, trade sources said.

Buyers of LNG are expected to cancel 40 to 45 cargoes for August-loading from the United States due to a slow recovery in Asian gas demand and record-high European gas stocks, market sources said this week.

Some sources said, however, that loading a cargo in August might make more sense compared with June and July, as there was a price contango between August and forward months, with low shipping rates.

Malaysia’s Petronas has offered cargoes for loading from its Bintulu plant in the third quarter on a bilateral basis, while Australia’s Woodside Petroleum has issued a ‘sell’ tender offering six cargoes for delivery over next January to March, 2022, industry sources said.

Sakhalin LNG plant has also offered a cargo for loading in mid-August, they added.

Angola LNG may have sold a cargo for July-loading at parity to a slight premium to Dutch TTF prices, one source said, though this could not immediately be confirmed.

On the buy side, India’s Reliance Industries was seeking a cargo for delivery in late July, while Indian Oil Corp was seeking a cargo for delivery in August, traders said.

Pakistan LNG also sought a cargo for August delivery in its first tender since last December.

The cargo is to meet summer demand from the power sector, an industry source said, adding that Pakistan LNG is expected to issue another tender early next week seeking a cargo to be delivered in September. (Reporting by Jessica Jaganathan, Editing by Sherry Jacob-Phillips)


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GasPro 2.0: A Webcast Symposium

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Following the successful GasPro Webcast Symposium in October 2019, the third GasPro Webcast Symposium will take place on October 21, 2020.

The 2019 webcast drew attendees from around the world, with more than 80% of the audience working in company management or engineering divisions.

The 2020 web event will gather experts in the fields of LNG, gas processing and process safety to share market, operations and engineering technology and trends with our audience.

Attendees of the 2020 webcast will learn about market solutions and technology deployments in a number of areas: LNG delivery infrastructure, small-scale desulfurization for NGL, H2S removal for gas treating, process safety for safety instrumented systems, small-scale LNG project design, and advances in freeze component removal for LNG.

October 21, 2020 08:30 AM CDT

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