Asian prices slip as cargoes flood; North Asian demand slows

By: |
June 21, 2019 8:24 AM

At least two commissioning cargoes, one for France's Total and another for Spain's Repsol, were delayed, according to industry sources and shiptracking data.

Prices for July delivery are estimated at about $4.40 per mmBtu, stable from the previous week, they added.Prices for July delivery are estimated at about $4.40 per mmBtu, stable from the previous week, they added.

Asian spot prices for liquefied natural gas (LNG) slipped this week on the back of a surplus of cargoes globally while imports from North Asia appeared to be slowing down this month, industry sources said. Spot prices for August delivery to Northeast Asia <LNG-AS> are estimated to be about $4.60 per million British thermal units (mmBtu), down about 10 to 30 cents from last week, the sources said. Prices for July delivery are estimated at about $4.40 per mmBtu, stable from the previous week, they added. A flurry of sell tenders flooded the global market while demand remained stable, industry sources said. “Demand is actually quite alright, but it’s the supply that’s depressing prices,” a Singapore-based LNG trader said.

Exxon Mobil Corp’s Papua New Guinea LNG export plant, Australia’s Ichthys plant, Nigeria LNG, Angola LNG plant and Abu Dhabi National Oil Co (ADNOC) offered cargoes for July loading or delivery, industry sources said. Supply was also coming in for August with Oman LNG offering three cargoes, sources added. Kuwait Foreign Petroleum Exploration Co (KUFPEC) may have sold a cargo for loading from Australia’s Wheatstone plant between July 30 and Aug. 3 at $4.20 per mmBtu, industry sources said, though this could not immediately be confirmed.

In Singapore, Gunvor sold a cargo for loading over Aug. 9 to 13 to BP at $4.80 per mmBtu, they added. The surplus of cargoes come as imports of the super-chilled fuel into Japan, South Korea, Taiwan and China look set to dip by more than 10% in June from the previous month, according to shiptracking data from Refinitiv. The LNG tanker ‘Seri Camar’ has been floating in Malaysian waters after loading the ship from Sabah oil and gas terminal in early June, data from Refinitiv and data intelligence firm Kpler showed. The tanker ‘Valencia Knutsen’, which is carrying the first LNG export cargo from Royal Dutch Shell’s Prelude floating LNG, is currently anchored in South Korea with destination stated as Geoje, Refinitiv data showed on Friday.

On the demand side, Indian Oil Corp may have bought a cargo for delivery on Aug. 22 at $4.50 per mmBtu, industry sources said, though this could not immediately be confirmed. India’s Gujarat State Petroleum Corp (GSPC) is seeking two cargoes for delivery in August, sources said. Providing some support, LNG loadings from Sempra Energy’s $10 billion Cameron export terminal in Louisiana have been delayed after the first cargo from the project was exported last month to start up operations. At least two commissioning cargoes, one for France’s Total and another for Spain’s Repsol, were delayed, according to industry sources and shiptracking data.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Oil above $70 to force cut in auto fuel taxes
2Mango output to be up 4.2% on year this season
3Affle India Rating: hold: Valuations do not factor in risks to business