The Platts JKM for cargoes delivery in December closed at $6.825/MMBtu on Friday, up 20 cents from Monday when the new front month started trading.
Demand from end-users ahead of winter power demand season and interest from traders continued to support the market. Offers were in the high $6s/MMBtu, and on Friday, the best offer for December delivery to the region was heard to be at $6.90/MMBtu.
As competition among buyers heated up, bids edged up throughout the week and by Friday, several bids were heard at above $6.70/MMBtu from traders looking to deliver rich cargoes into northeast Asia.
A spot transaction was also heard concluded earlier this week at $6.70-$6.80/MMBtu for first-half December delivery of a rich cargo to Japan, sources said.
Additional demand emerged in South Korea, where Komipo and Posco issued a tender October 21 to buy a single standard-size LNG cargo for delivery to Gwangyang on a DES basis over December 7-10.
A close eye was also kept on Kogas’ tender for one cargo a month over November-February, as its outcome would likely set the tone for winter buying in the Pacific. The tender closes October 21.
Demand from India was limited as buyers insisted there was no interest for November or December cargoes priced above $6/MMBtu. Indian Oil Corp. was seeking two cargoes for December in tender which will close on October 25.
In the Atlantic, Egypt Egas was expected to issue a tender Sunday seeking 96 firm cargoes and an additional 12 optional cargoes for delivery in 2017 and 2018. The closing of for submission of bids is November 6, sources said.
Kuwait KPC also launched a tender to buy one December cargo, the result of which will be closely watched by those hoping for future price indications.
In the prompt market, ExxonMobil offered a DES cargo for loading from Gorgon LNG October 24 and delivery to Far East over November 3-18 or to India over November 7-14.
The tender is expected to close October 24 with validity until October 26.
Source: PlattsPrevious Next