Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

GLOBAL LNG-Asian prices slip as numerous sell tenders overshadow demand

Published 17/05/2019, 05:50 pm
© Reuters.  GLOBAL LNG-Asian prices slip as numerous sell tenders overshadow demand
NG
-

* Chinese seek cargoes for Q3 and Q4 at discounted prices -trade

* Sell tenders from Egypt, Angola, Australia, Indonesia

* Demand seen from Pakistan, South Korea, Mexico, Chile

By Jessica Jaganathan

SINGAPORE, May 17 (Reuters) - Asian spot prices for liquefied natural gas (LNG) fell to a three-week low this week as cargoes were offered against little buying interest despite the approach of summer, when warmer weather typically boosts power generation demand.

Spot prices for July delivery to Northeast Asia LNG-AS slipped to $5.35 per million British thermal units (mmBtu), down 30 cents from the previous week, several industry sources said.

Prices for cargoes delivered in June are estimated at $5.30 per mmBtu, also down 30 cents from a week ago, they said.

Several LNG sellers offered cargoes, overshadowing limited buying interest from Pakistan and Mexico, they said.

"The European gas prices fell overnight, so that's dragging down Asian prices as well," a Singapore-based trader said.

Day-ahead prices at the Dutch TTF hub fell on Thursday on lower gas demand in continental Europe, while the spread between the Asian and European markets narrowed this week with offers for delivery of cargoes from the United States to Europe in June and July, sources said. were several sell tenders this week, with Egypt's natural gas company (EGAS) offering up to 13 cargoes for loading from its Idku plant over June and July. LNG offered its second cargo this week for delivery in June, after earlier offering a cargo for late May to June delivery, trade sources said. Oman LNG has also indicated that it will have six cargoes to sell for loading over June to September. LNG/TEND

Australia's Ichthys LNG plant may be offering a spot cargo, while Algeria's Sonatrach may be offering a cargo through private talks, traders also said.

Indonesia's Pertamina has offered five LNG cargoes after the country's monthly exports of the fuel dropped in April to its lowest in two years. The reason for the drop in exports was not immediately clear. pressure on prices was limited by the shutdown of a pipeline for repairs in Malaysia and several buy tenders.

Malaysia's state oil and gas company Petroliam Nasional Bhd has temporarily shut the Sabah-Sarawak pipeline that feeds gas to its LNG complex at Bintulu in the state of Sarawak, which is expected to curb spot exports from the plant. is seeking five cargoes for delivery over July to September, while Mexican utility CFE and Chilean consortium GNL Chile are also seeking cargoes for delivery over May to August, industry sources said. buyers were also in the market for the third and fourth quarter but at heavily discounted prices, indicating the demand may not be firm, a Singapore-based trader said.

A South Korean company was also seeking a cargo for July, the trader said.

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.