Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

GLOBAL LNG-Asian prices steady on ample supply despite U.S. cargo cancellations

Published 26/06/2020, 06:44 pm
© Reuters.
NG
-

* Buyers of U.S. LNG to cancel 40-45 cargoes for August-loading

* Pakistan LNG seeks cargo for August, 1st tender since Dec

* Malaysia, Angola, Russia cargoes offered in spot - sources

By Jessica Jaganathan

SINGAPORE, June 26 (Reuters) - Asian spot liquefied natural gas (LNG) prices remained steady this week on a continued stream of spot supply even though traders continued to cancel cargoes loading from the United States due to poor economics.

The average LNG price for August delivery into northeast Asia LNG-AS was estimated to be about $2.20 per million British thermal units (mmBtu), slightly lower than the previous week, trade sources said.

Buyers of LNG are expected to cancel 40 to 45 cargoes for August-loading from the United States due to a slow recovery in Asian gas demand and record-high European gas stocks, market sources said this week. sources said, however, that loading a cargo in August might make more sense compared with June and July, as there was a price contango between August and forward months, with low shipping rates.

Malaysia's Petronas has offered cargoes for loading from its Bintulu plant in the third quarter on a bilateral basis, while Australia's Woodside Petroleum has issued a 'sell' tender offering six cargoes for delivery over next January to March, 2022, industry sources said.

Sakhalin LNG plant has also offered a cargo for loading in mid-August, they added. LNG may have sold a cargo for July-loading at parity to a slight premium to Dutch TTF prices, one source said, though this could not immediately be confirmed.

On the buy side, India's Reliance Industries was seeking a cargo for delivery in late July, while Indian Oil Corp was seeking a cargo for delivery in August, traders said.

Pakistan LNG also sought a cargo for August delivery in its first tender since last December. cargo is to meet summer demand from the power sector, an industry source said, adding that Pakistan LNG is expected to issue another tender early next week seeking a cargo to be delivered in September.

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.