Global LNG prices for November soften after earlier strong weeks
LONDON, Sept 14 (Reuters) - Asian spot liquefied natural gas (LNG) softened for November delivery after several weeks of strong demand and tightening supplies led buyers to wait for a correction in prices.
Spot prices for November <LNG-AS> delivery in Asia were heard around $12.00 per million British thermal units (mmBtu) this week, down 5 cents from the week before, market sources said.
The first half of November was weaker than the second, with one cargo for delivery in the first two weeks of the month offered but unsold at $12.00, traders said.
The last of the October cargoes also weakened during the week, slipping to around $11.40 from $11.55.
LNG prices had risen in recent weeks to multi-year seasonal highs and above peaks reached in the previous four winters, usually the most expensive period of the super-cool gas.
Aside from demand from Japanese and South Korean customers seeking to replenish their gas stocks before winter, prices of contracts were pulled up by rising crude oil, against which some deals are priced.
Brent crude futures hit $80 a barrel briefly this week, the highest since May. Brent prices have not been consistently at the $80 mark since 2014.
In Bangladesh, one of the world's latest LNG importers, supplies to its new floating LNG terminal are set to start on a regular basis following months of technical difficulties after a cargo from Qatar loaded last Sunday.
An official form the state-owned Petrobangla said cargos now should be arriving at a rate of around three a month, or every 10 days.
Nigeria Liquefied Natural Gas Company (NLNG) was selling a cargo for Sept. 26-28 FOB loading, with the tender closing on Sept. 13 Exxon Mobil's Papua New Guinea LNG plant was also tendering a cargo, traders said.
India's state-run GAIL (India) was in the market to sell a cargo from Cove Point, one trader said, adding it was the third time the utility was trying to sell LNG from the U.S. terminal with which it has a long-term tolling agreement.
Partners in Inpex Corp's Ichthys project in Australia bought a second commissioning cargo, another trader said.
Despite low activity this week from Asian buyers, utilities are expected to be restocking sites after a hot summer which prompted more gas usage and delayed stocking up.
South Korea's KOGAS, the world's second corporate largest LNG buyer and only wholesaler in the country, bought 2.3 million tonnes of LNG last month -- an increase of 18.8 percent from a year ago. (Reporting by Sabina Zawadzki Editing by Edmund Blair)
As discussed in the HPI Market Data 2019 report, published in November by Gas Processing & LNG’s sister publication, Hydrocarbon Processing, rising propane and ethane supplies in the US have been enabled by greater production of shale gas.
Industry Trends: Norway targets global LNG market
Norway aims to become a leading player in the global LNG market during the next several years through the establishment of new, large-scale LNG terminals.
Regional Focus: Challenges of scaling up Africa’s LNG production
Several gas projects are underway in Africa, but they continue to be constrained by inadequate infrastructure, slow finance mobilization, lack of security and uncertainty over hydrocarbon regulations that are casting doubt on the outcome of the continent’s drive to meet its anticipated 128% gas demand increase by 2040.
GasPro 2.0: A Webcast Symposium
The global LNG industry is becoming increasingly interconnected as grassroots export projects get off the ground. Another technology route for processing gas into fuels—GTL—is attracting renewed attention due to improving economics. Small-scale solutions for both LNG and GTL are at the forefront of new technological developments, while major projects using more conventional technologies continue to start up around the world.
During this webcast, we will focus on LNG, GTL, gas processing technology developments and deployments, operations, small-scale solutions, transportation, trading, distribution, safety, regulatory affairs, business analysis and more.
October 25, 2018 08:30 AM CDT