The Platts JKM for July delivery cargoes ended the Asian trading week at $4.625/MMBtu Friday, up 15 cents/MMBtu from Monday when the new front month started its assessment period.
Offers stubbornly remained in the high $4s/MMBtu throughout the week while bids moved up to low-to-mid $4s/MMBtu range from low $4s/MMBtu heard earlier in the week.
Buy interest was mostly seen from traders and optimizers, offering support to the market.
A number of buy and sell tenders also dominated the market in both Asia Pacific and the Atlantic Basin.
Demand from North Asia remained weak and limited demand was also heard from India although interest in prompt cargoes emerged with GAIL launching a tender.
The Indian company issued a single cargo tender for June delivery and the tender is expected to close May 24, according to market sources.
Thailand’s PTT too was looking for a cargo for early July delivery through a tender. The tender was awarded at close to mid $4s/MMBtu, according to market sources.
On supply side, UAE’s Adgas issued a tender, offering one cargo for mid-June loading. The tender will close May 23 with validity until May 24, market sources said.
Argentina’s Enarsa bought nine cargoes for June to August delivery into Bahia Bianca and Escobar through tender.
The slot into Bahia Bianca for June delivery was secured by BP, while Shell and Vitol won the other four slots over July and August, market sources said.
Of the four Escobar slots, Shell and Gas Natural Fenosa secured two deliveries each, they added.
Bahia Blanca deliveries were heard awarded at around $4.60/MMBtu, while the cargoes into Escobar were heard concluded at around $4.80/MMBtu.
Lithuania’s Achema had come to the market for six cargoes each year for delivery over January 2017 to December 2019, market sources said.
The buyer is seeking a total of 20 trillion Btu of gas or 385,000 mt of LNG per year, and offers are to be linked to NBP or TTF prices of the month prior to delivery, according to the sources.
On production, Angola was heard to have started discussions with potential buyers, preparing for restart. Some traders said they had received notifications from the Chevron-led Angola LNG, clarifying the tender process including information on launch, validity and other procedure matters. Likewise, start-up activities at Australia’s Gorgon LNG project were underway with the first LNG production expected in the coming weeks, according to project operator Chevron.
Market participants have said restarts of both projects would put the market under further pressure when demand from Asia stayed weak.
Source: PlattsPrevious Next