RIM Market News >  Weekly Summary

LNG: Jul 1-5: DES Northeast Asia market steady while fundamentals remain loose

2019/07/08 07:00

--DES Northeast Asia

DES Northeast Asia prices were steady last week. Although some portfolio players and some Japanese power companies planned to buy additional LNG as prices were low compared to coal prices, talks were only seen sporadically and in general, the market remained quiet. Supply/demand fundamentals, however, remained loose as ample supply was seen from Asia Pacific, including Australia and Papua New Guinea, and from the Middle East including Oman. Although Royal Dutch Shell and BP had purchased a lot of cargoes due to stoppage of supply from the 15.50mil mt/year Atlantic project in Trinidad and Tobago, the situation had calmed down by the end of last week. Under the said situation, low to mid-$4’s bids were submitted into tenders closed on Jul 3 from the 8.40mil mt/year Ichthys project in Australia and the 6.90mil mt/year Papua New Guinea project.


--FOB Atlantic, DES Europe and South America

In the Middle East, ADNOC LNG of the United Arab Emirates (UAE) had closed a sell tender on Jul 3 for cargoes to be loaded during Aug 3-5. Meanwhile, the daily highest temperature increased to 40 degrees Celsius in the UAE with the start of the summer season. Kuwait also had days with temperatures rising to 50 degrees. Therefore, gas demand for air-conditioning increased in Middle East countries. However, no movement was seen from Dubai Supply Authority (DUSUP) and Kuwait Petroleum Corp (KPC) to buy spot cargoes. On the other hands, Gujarat State Petroleum Co (GSPC) had closed buy tenders consecutively. GSPC had conducted two buy tenders from the month of June for two August delivery cargoes.


--FOB Middle East, DES South Asia and the Middle East

In the Atlantic basin, Angola LNG had closed sell tender on Jul 4 for a cargo to be delivered during Aug 3-20. Angola LNG also conducted sell tender on Jul 2 for another August delivery cargo. Both cargoes were available to be shipped until Singapore. Meanwhile, state-run Petrobras had skipped buying additional August delivery cargoes. Argentina’s state-run IEASA had also procured cargoes until September. IEASA was not expected to buy additional years for the rest of the year. Meanwhile in Europe, Malaysia’s state-run Petronas had sold its 50% stake in the 4.40mil mt/year Dragon terminal in the UK to Ancala Partners.

Tokyo : LNG Team  Y. Ota  +81-3-3552-2411
Copyright©2019 RIM Intelligence Co. ALL RIGHTS RESERVED.
facebook      twitter

About SSL?