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LNG: Aug 5-9: DES Northeast Asia market softens with fundamentals loosening

2019/08/12 07:00

--DES Northeast Asia

DES Northeast Asia prices for prompt delivery fell last week. Supply room was ample including cargoes offered in sell tender while spot demand was limited. Some spot cargoes for early to mid-September delivery were still available and supply/demand fundamentals were notably weak. Sellers holding spot cargoes moved on sales and lowered their offers. A buy tender closed by Tohoku Electric Power on Aug 7 for an Aug 20-Sep 10 delivery cargo was awarded by Thursday morning. France’s Total was said to have sold it in the low-$4’s. Total would likely supply a cargo from outside Asia Pacific such as the Atlantic basin. Few players participated in the tender as the timing was very prompt and as a result the awarded price was higher than the market for second-half September to October delivery.

 

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

FOB Middle East, DES South Asia and Middle East prices lost last week. While demand was observed from India, there were ample available cargoes from the Middle East and Australia, which exceeded the demand. Pakistan LNG Ltd (PLL) issued a buy tender for 10 cargoes to be delivered from October to December 2019. PLL was seeking four cargoes in October which included cargoes to be delivered during Oct 1-2, Oct 11-12, Oct 16-17, Oct 28-29. In November Pakistan was seeking two cargoes to be delivered during Nov 12-13 and on Nov 30. PLL was seeking delivery of four cargoes in December which included cargoes to be delivered during Dec 10-11, Dec 16-17, Dec 21-22 and Dec 26-27. The buy tender would close on Sep 5 and details regarding technically qualified bidders would be disclosed on Sep 5 and information regarding bidders qualified on commercial ground would be announced on Sep 6.  

 

--FOB Atlantic, DES Europe and South America

The FOB Atlantic, DES Europe and DES South America markets slipped last week. Although potential demand was seen from South America and Europe, ample cargoes were available from projects in the Atlantic basin including Angola, Nigeria and the US. Therefore, supply/demand fundamentals were loose. Turkish state-owned Botas issued a buy tender closing Aug 8 for a total of four cargoes for delivery Nov 17-19, Dec 14-16, Jan 8-10 and Feb 2-4. Botas was moving to buy winter cargoes at an early stage as spot prices were perceived to be relatively low.

 

Tokyo : LNG Team  M Fukami  +81-3-3552-2411
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