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Weekly Summary

LNG: Aug 3-7: DES Northeast Asia market rises with lower supply from Gorgon

--DES Northeast Asia
DES Northeast Asia prices were at $3.05-3.15 for second-half September delivery, up by around 80cts from late July. Looseness in supply/demand fundamentals rapidly improved due to a reduction in supply from the 16.50 mil mt/year Gorgon project, where troubles at a heat exchanger occurred in July. Although spot demand was not necessarily brisk, demand was observed from Japanese players including Tohoku Electric Power and Nippon Steel as well as Guangdong Energy in China. Chevron in the US and Royal Dutch Shell plc also moved to buy alternative cargoes.

--FOB Middle East, DES South Asia and the Middle East
Pakistan LNG (PLNG) awarded its buy tender closed on Jul 27 for a cargo for delivery Aug 27-28 to Azerbaijan state-owned Socar at 5.7395% of Brent crude prices. European traders Gunvor and Trafigura also participated in the tender but sources reckoned that Socar won the tender as its price was the lowest.

--FOB Atlantic, DES Europe and South America
DES Europe prices strengthened. Prices for mainly discussed first-half September delivery stood at $2.25-2.55, up by about 70cts from late July. European major natural gas markets such as TTF in the Netherlands and NBP in Britain continued rising, and LNG spot prices were also increasing. These natural gas markets were said to have risen since Ukraine, which stopped taking Russian gas, increased procurement of gas from Europe. A strong Henry Hub market in the US also induced buying in the TTF and NBP markets.

Tokyo : LNG Team  N Yanagi   +81-3-3552-2411Copyright © RIM Intelligence Co. ALL RIGHTS RESERVED.