🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

GLOBAL LNG-Prices rise on short-covering, Hurricane Harvey disruption

Published 16/09/2017, 05:44 am
© Reuters.  GLOBAL LNG-Prices rise on short-covering, Hurricane Harvey disruption
SHEL
-
NG
-
LNG
-

By Oleg Vukmanovic and Mark Tay

LONDON/SINGAPORE, Sept 15 (Reuters) - Asian spot LNG prices rose this week mostly due to short-covering by traders and portfolio players, while others sought replacement supply following loading delays at Cheniere Energy's Sabine Pass plant caused by Hurricane Harvey.

Spot prices LNG-AS for October delivery rose 60 cents to $7 per million British thermal units (mmBtu). November prices were seen higher at $7.40-$7.50 per mmBtu.

"It seems the (high Asian spot) prices are not really reflecting the supply and demand fundamentals," a Singapore-based trader said, referring to the spike in prices despite traditionally weak demand in October.

Russia's Sakhalin II liquefaction plant launched a tender last Friday selling two cargoes loading in mid-November. The tender closed this Friday but bids are valid until Saturday, sources said.

Mexico's state-run power utility CFE picked Royal Dutch Shell RDSa.L and Cheniere Energy LNG.A to deliver nine liquefied natural gas (LNG) cargoes in the fourth-quarter, trade sources said.

Traders said Shell won most of the tender, which was awarded on Tuesday, with shipments to be spread across October, November and December into the Altamira terminal on Mexico's Atlantic coast.

Asian spot prices also gained because of disruptions to U.S. loadings by Hurricane Harvey, which filtered through to Asia.

Loadings at Cheniere's Sabine Pass terminal in Louisiana resumed last Wednesday, after more than a week of delays, shipping data in Thomson Reuters Eikon showed. on feedgas inflows into Sabine Pass it looks as if all four production units at Sabine Pass are back up and running.

A fire at Trinidad's Atlantic LNG facility had no impact on production or loading activity, a project spokesman said.

Supply was relatively healthy, however, with Indonesia's Donggi Senoro and Australia's Gladstone and APLNG projects all offering supply.

The Asia Venture LNG tanker is heading toward Chevron's new Wheatstone project in Australia to export its first cargo with an estimated arrival of Sept. 24, shipping data shows.

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.