Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Global LNG-Asian LNG price dips as spot supply floods market

Global Asia LNG Smaller

LONDON, Nov 29 (Reuters) - Asian spot prices for liquefied natural gas (LNG) slipped this week as new supply offers kept coming on the market amid subdued demand.

The average LNG price for January delivery into northeast Asia <LNG-AS> was estimated at around $5.60 per million British thermal units (mmBtu), $0.10/mmbtu down from last week.

Buying activity was limited in both Asia and Europe as gas stocks were high, market sources said. But supply offers were ample.

"It's a slow grind down," one LNG trader said. "At the moment, I don't see a reason for prices to start rising in December."

Two of Australia's projects were selling strips of cargoes.

Australia Pacific LNG (APLNG) has offered one cargo a month for loading over 2020.

Ichthys LNG plant has offered five cargoes for loading between December and April.

Australia's producer Woodside Energy was selling a late December cargo from Pluto LNG, a source said.

Another Australian project, Gorgon, was expected to end its planned maintenance on one of its trains on Friday after a production reduction for more than a month.

Nigeria LNG closed a tender for two December cargoes, while Russia's Novatek might have offered up to four cargoes on the spot market, sources said.

On the demand side, an announcement of South Korea's energy ministry that the country will idle up to a quarter of its coal-fired power plants between December and February did not prevent prices from falling.

The impact of the closure is expected to be limited at the moment as Korea Gas Corporation (KOGAS) has purchased over a dozen cargoes for winter supply earlier this autumn. However, future winter purchases will depend on the weather, an industry source said.

Some demand came from Mexico where state power utility CFE was looking for five cargoes for delivery during January and February.

India's Gujarat State Petroleum Corp (GSPC) was seeking a late December cargo, while Reliance Industries has bought a cargo for the first half of January delivery, market sources said.

Pakistan LNG announced that commodity trader Gunvor submitted the lowest bids for four out of five cargoes for delivery in January. The remaining cargo will be supplied by DXT Commodities.

In Europe, several deals were done for delivery from end December to early February at discounts over $0.40 per mmBtu to the Dutch gas benchmark, an LNG trader said.

(Reporting by Ekaterina Kravtsova in London Additional reporting by Jessica Jaganathan in Singapore and Jane Chung in Seoul Editing by Matthew Lewis)


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Business Trends: Four challenges to Australia’s rising role in the global LNG market
-David Gross
The past 10 yr have been the decade of natural gas, but the next 10 yr will belong to LNG as countries race to build out their export capacity.
Editorial Comment
-Adrienne Blume
Australia and Middle Eastern countries, which have been net LNG exporters, are now foraying into LNG imports due to supply issues.
Industry Focus: Mixed performance for Africa’s gas markets in 2019 poses questions for next decade
-Shem Oirere
As 2020 begins, Africa’s gas market is left with a mixed bag of achievements that only partly confirms a prediction by the International Gas Union (IGU) in early 2019 that the continent’s natural gas segment is “facing a potential turning point.”
Regional Focus: North American NGL to boom alongside petrochemicals
-Eugene Khartukov
Strong natural gas production and rapidly rising demand from petrochemicals makers have resulted in record-high production of natural gas plant liquids in North America, particularly in the U.S. This growth has been led by ethane.


GasPro 2.0: A Webcast Symposium

View On-Demand

Following on the heels of the highly successful GasPro 2.0 Webcast Symposium in October 2018, the second GasPro Webcast Symposium 2.0 will take place on October 24, 2019.

The 2019 web event will gather experts in the fields of LNG, gas processing, and gas transport/distribution to share their operations expertise, engineering and design solutions, and technology advances and trends with our audience.

Attendees will learn about technology and operational solutions and deployments in a number of areas: plant design and expansion, construction, NGL production, optimization, sulfur removal, marine operations and separation technology.

October 24, 2019 08:30 AM CDT

View On-Demand

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.