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Weekly Summary

LNG: Nov 18-22: NE Asia market softens amid loose supply/demand with ample availability

--DES Northeast Asia
DES Northeast Asia prices weakened last week. Supply/demand fundamentals loosened as sell tenders were issued one after another while demand was seen only from Taiwan. PNGLNG in Papua New Guinea closed a sell tender on Nov 20 for a cargo loading from the 6.90 mil mt/year PNGLNG project on Dec 17. Bids would be accepted on a DES or an FOB basis. Ichthys LNG in Australia closed a sell tender on Nov 21 for a cargo loading Dec 7-8 from the Ichthys project. In addition, Indonesia's Tangguh LNG issued a sell tender on a DES basis for January to March loading from the Tangguh project. Offered in the tender were 5 cargoes loading Jan 16-20, Jan 25-29, Feb 20-24, Mar 6-10 and Mar 18-22 respectively. The tender would close on Nov 28.
Meanwhile, Taiwan's CPC Corporation was seen to have awarded all the cargoes in its sell tender closed on Nov 11. Through the tender, CPC was looking for one cargo per month for delivery to the Yung-An terminal during January to December 2020. While the quantity was unclear, Royal Dutch Shell, Marubeni, Mitsui and Britain's BP likely won the tender. CPC apparently did not award all the cargoes in its buy tender closed on Nov 18. Through this tender, CPC was seeking one cargo per month to be delivered to the Taichung terminal. One trader pointed out that the tender was awarded to players like Shell and BP.

--FOB Middle East, DES South Asia and the Middle East
FOB Middle East, DES South Asia and DES Middle East prices softened. Supply/demand fundamentals loosened. While there was demand from South Asia, ample cargoes were available from the Middle East, the Atlantic basin, Australia and Indonesia. Indian end-users floated buy tenders one after another. GAIL closed on Nov 20 its tender to buy one cargo for Dec 20-25 delivery into the 5 mil mt/year Dabhol terminal. Offers would be valid through the same day. Meanwhile, GSPC also closed on Nov 20 its buy tender for first-half January arrival with offers valid through the same day.

--FOB Atlantic, DES Europe and South America
FOB Atlantic and DES Europe and South America slipped last week. Market sentiment remained weak with demand thin. The 173,400cbm MEGI tanker "British Listener" carrying a cargo from Trinidad and Tobago was expected to arrive at the 14.80 mil mt/year Isle of Grain terminal in Britain in mid-December. The tanker departed from the 15.00 mil mt/year Atlantic project in Trinidad and Tobago on Oct 10 and was believed to be transporting an equity cargo of Britain's BP. The tanker was sailing towards Asia via the Cape of Good Hope but in the third week of November in Singapore, it moved back towards the Cape of Good Hope. BP had intended to sell the cargo to Asia but a deal was apparently not done. As a result, sources reckoned that the BP was supplying the cargo to the Isle of Grain terminal where it has usage rights.

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