Reuters are reporting that Asian spot LNG prices rose last week, buoyed by the outcome of a two-cargo sale tender from Russia’s Sakhalin II export plant as well as a purchase by Japan and demand from India.
Spot prices for November delivery rose about 15 cents to US$7.60 per mmBtu.
Russia’s Gazprom sold one of two mid-November loading cargos from its Sakhalin II plant for as much as US$7.80 per mmBtu but prices have retreated since, with some cautious northeast Asian buyers waiting out the rally.
Still, November shows a relatively strong contango, with the back-end of the month trading above the front.
A sale tender from Indonesia’s Donggi Senoro facility for early November delivery fetched US$7.50 per mmBtu. The buyer was a Japanese utility.
Indian buyers including Gail and GSPC sought supply.
Kuwait closed a tender seeking a November shipment.
At France’s Montoir terminal, a cargo held in storage will be reloaded onto the Cool Runner tanker for onward export to state-run Petrobras in Brazil.
State-run Pakistan LNG Ltd on Monday launched a tender seeking four cargoes for January delivery.
A potential bullish factor for Asian winter markets are potential delays to production from Chevron’s new Wheatstone LNG project.
The Asia Venture LNG tanker was initially headed for Wheatstone with a due date of 24 September but on 21 September was diverted toward the port of Dampier, indicating fresh export delays.
Wheatstone was initially scheduled to export its first cargo in early September.
Read the article online at: https://www.lngindustry.com/liquefaction/25092017/prices-edge-higher-on-november-demand/