LNG: Apr 26-Apr 30: DES Northeast Asia market rises further with strong demand to the summer season
--DES Northeast Asia
DES Northeast Asia prices rose 30cts from last Friday to $8.90-9.20 for first-half June delivery. Two Korean independent companies and several Japanese end-users were moving to build stocks towards summer. In addition, portfolio players such as Britain's BP were buying cargoes to cover their short-positions. Demand was increasing. Gains in European natural gas markets also contributed to the rise in DES Northeast Asia prices. On Thursday, Unipec sold a cargo for Jun 3-7 delivery to Japan to a Major at $8.90. Before the deal, Russia's Sakhalin Energy was said to have sold a cargo loading Jun 6 from the Sakhalin 2 project on a DES basis for mid-June delivery at $8.70-8.80 via a tender closed on Wednesday.
COVID-19 spreading again in India, gas demand was sluggish and LNG stocks at import terminals were rising. At the 17.50 mil mt/year Dahej terminal and 5.40 mil mt/year Mundra terminal where inventories were high, cargoes arriving in May to June could not be received and their destinations had to be changed. At the 4.90 mil mt/year Hazira terminal as well, stocks were increasing.
Argentina's state-owned IEASA closed a buy tender on Wednesday for a total of 10 cargoes for delivery during June to August to the 3.40 mil mt/year Bahia Blanca terminal. The company was current evaluating offers submitted. Participants in the tender included Britain's BP, Royal Dutch Shell, France's Total, European traders Trafigura, Gunvor and Vitol, US Cheniere and Europe's RWE.