LNG: Jan 27-31: Egypt buys 4 cargoes
In the DES Northeast Asia market last week, the front delivery rose to around $14.55 in response to the strong Netherlands' TTF market. The DES Northeast Asia market, however, was subdued. Along with Chinese New Year holidays in China and Singapore, limited demand from Japan played a part. A European trader said, "In Japan, most players see that the winter delivery market is coming to an end. Unless a strong cold snap arrives, LNG demand will unlikely grow." With historical weakness in freight rates enables market players to bring cargoes to distant consumption countries from LNG projects. A European trader pointed out, "LNG cargoes are now easily moved to Europe where spot demand remains and prices are relatively high. As freight rates are too low, any cargoes from any projects can be delivered to anywhere without deliberation of costs."
--FOB Middle East, DES South Asia and the Middle East Egyptian General Petroleum Corp (EGPC) bought four cargoes for February to March delivery through its tender closed on Jan 27. The awarded prices in the tender were at premiums of 80cts to $1.10 to the Netherlands' TTF market.
--FOB Atlantic, DES Europe and South America Natural gas prices in Europe, including the Netherlands' TTF natural gas market, jumped owing to expectations that gas demand would increase with low temperatures. Supply cuts from Norway have been working as a bullish sentiment. The maintenance period at the Asgard gas field was extended from the initial Jan 28-30 to Jan 28-Feb 3.
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