Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolios

Global LNG-Prices climb as trading activity picks up

Published 04/07/2015, 02:52 am
Global LNG-Prices climb as trading activity picks up
BP
-
CNA
-
BG
-
IOC
-
036460
-
8058
-
9508
-

* Trafigura expected to win Pakistan's latest tender

* Indonesia's Donggi Senoro export plant ramps up

By Sarah McFarlane and Oleg Vukmanovic

LONDON/MILAN July 3 (Reuters) - Asian liquefied natural gas (LNG) spot prices for August delivery rose on Friday, with a pick-up in activity driven by trading houses and portfolio players manoeuvring volumes between the competitively priced Atlantic and Pacific basins.

The price of Asian spot cargoes rose to $7.55 per million British thermal units (mmBtu), from $7.30 the previous week.

"In the last five days prices have changed significantly," said a trader.

"It's not a particular shift in end-user demand or producer supply, it's not like suddenly the significant Japanese, Korean, Chinese end-users have unveiled new demand, it's not that, but we do have ongoing tenders."

State-run Indian Oil Corp IOC.NS has launched a tender to buy an LNG cargo for delivery on Aug. 6-7. ID:nL8N0ZH1QM

Commodity trader Gunvor is to supply Pakistan with three LNG cargoes from August through October after a recent tender in which all other participants were disqualified. ID:nL8N0ZI3AQ

Traders said that Gunvor recently reloaded a cargo from Spain and may use these to supply Pakistan.

The latest tender from Pakistan for two cargoes for July is expected to be awarded to Trafigura TRAFGF.UL , traders said, although results are not expected to be officially announced until Wednesday.

"It's for July, we're in July, so it's super prompt. I think it's a challenge for players really, but obviously Trafigura has been investing in its storage position in Singapore in order to be prepared for exactly this scenario," said a trader.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Earlier this week traders said Trafigura had bought a cargo from Australia's Pluto export plant for delivery into its newly acquired storage capacity at Singapore's import terminal in mid-July. ID:nL8N0ZI2J9

The Swiss-based trading house is also set to pick up a cargo from Britain's Isle of Grain import terminal, which was sold to it by British utility Centrica CNA.L . ID:nL8N0ZI3YL

On the supply side Indonesia's new Donggi Senoro LNG export plant, which began ramping up last month, has sold its first cargo to state-run company Pertamina's Arun import terminal for delivery in late July-early August.

The plant plans to produce 13 cargoes this year, six of which will go to buyers such as Japanese trader Mitsubishi 8058.T and utility Kyushu Electric 9508.T as well as Korea Gas Corp. 036460.KS , while a further six cargoes will be earmarked for spot markets, Aditya Mandala, corporate affairs director at Donggi Senoro LNG said.

Abu Dhabi's ADGAS has launched a sell tender for August, while Nigeria's Bonny LNG has launched a sell tender for July. ID:nL8N0ZJ2D2 ID:nL8N0ZJ1T1

Indonesia's Tangguh liquefied natural gas (LNG) export plant has sold a total of three cargoes to BG Group BG.L and BP BP.L , for July/August loading. ID:nL8N0ZJ2ME

Global supplies remained ample, with limited disruption beyond ongoing issues in Yemen.

A spokeswoman for Australia's North West Shelf denied talk this week of additional power supply problems last weekend at the plant.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.