LNG: Oct 4-8: DES Northeast Asia market plunges after reaching record high
--DES Northeast Asia
DES Northeast Asia prices fluctuated. Prices for second-half November reached a record high exceeding $40.00 on Wednesday. However, on Friday, it fell to $35.85-36.15, down 85cts from last Friday. In addition to falling TTF natural gas prices in the Netherlands, three Chinese state-owned companies were expected to postpone spot purchase of winter cargoes and market sentiment turned bearish. End-users in Japan, Korea and Taiwan continued to withhold from procuring spot cargoes for November to December delivery. This also added to the bearish tone.
--FOB Middle East, DES South Asia and the Middle East
Supply from the 10.50 mil mt/year Oman project was recovering to normal levels. In September, 12 cargoes amounting to about 900,000mt were shipped from the Oman project, higher than August and also the same period last year. Owing to problems at production facilities at the No.1 train, production at the project was reduced and supply was temporarily delayed. Oman LNG informed several long-term customers that supply in winter might be affected but supply delays were apparently resolved at the moment.
--FOB Atlantic, DES Europe and South America
20 cargoes were supplied each month this year from the 22.30 mil mt/year Bonny Island project operated by Nigeria LNG (NLNG) and supply was smooth. On Oct 3, the 148,300cbm conventional tanker "LNG Kano" lifted a cargo and departed for the 12.60 mil mt/year Barcelona terminal.