Advertisement
UK markets close in 1 hour 17 minutes
  • FTSE 100

    8,130.67
    +51.81 (+0.64%)
     
  • FTSE 250

    19,825.73
    +223.75 (+1.14%)
     
  • AIM

    755.70
    +2.58 (+0.34%)
     
  • GBP/EUR

    1.1674
    +0.0017 (+0.15%)
     
  • GBP/USD

    1.2498
    -0.0013 (-0.10%)
     
  • Bitcoin GBP

    51,599.62
    +684.26 (+1.34%)
     
  • CMC Crypto 200

    1,338.43
    -58.11 (-4.16%)
     
  • S&P 500

    5,104.03
    +55.61 (+1.10%)
     
  • DOW

    38,288.29
    +202.49 (+0.53%)
     
  • CRUDE OIL

    83.97
    +0.40 (+0.48%)
     
  • GOLD FUTURES

    2,354.80
    +12.30 (+0.53%)
     
  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     
  • HANG SENG

    17,651.15
    +366.61 (+2.12%)
     
  • DAX

    18,153.01
    +235.73 (+1.32%)
     
  • CAC 40

    8,093.10
    +76.45 (+0.95%)
     

Global LNG-Prices dip on ample supplies, warm weather forecasts support

* Egypt to launch up to $3bn buy tender

* Jordan seeking 18 cargoes a year in 2017/18

By Sarah McFarlane

LONDON, May 22 (Reuters) - Asian spot liquefied natural gas (LNG) prices for July delivery edged lower this week, as buyers saw no urgency to tap the well-supplied market, traders said.

The price of Asian spot cargoes was $7.60 per million British thermal units (mmBtu), down 10 cents from the previous week.

"For the summer market, the price has already gone up. I don't see too much more upside for this summer," a trader said.

"As I see it buyers are not in a hurry to procure. There's still no sign of any spot demand from Korea."

ADVERTISEMENT

Traders said forecasts for a warm summer in Japan, South Korea and the Middle East was providing some support.

"Warmer than average weather is slightly bullish, meaning you will need more power for your air conditioner," a second trader said.

For longer term supplies, Egypt and Jordan are both seeking vast quantities of LNG to meet their 2016/17 needs.

Jordan is seeking around 18 cargoes of LNG per year in 2016 and 2017, while Egypt is set to launch a tender in early June to buy up to 96 cargoes of LNG over a two year period.

The tender will go towards supplying Egypt's second planned floating import terminal, having already secured $2.2 billion worth of LNG in its first-ever tender to supply a newly installed import terminal.

Elsewhere, Pakistan is expected to announce a result to its buy tender at the end of the month.

On the supply side, traders said Yemen continued to be the main disruption to global supplies after Australia's North West Shelf resumed operations earlier this month.

"It seems North West Shelf is either at full capacity or close to it, they seem to be loading almost every day," a trader said.

Indonesia's Pertamina has launched a tender to sell a single cargo loading on July 7 and 8 from the Bontang export plant, while Australia's Darwin LNG export plant is expected to launch a tender to sell one cargo loading in July.

Brunei's LNG export plant has sold two cargoes following a recent tender, with Japanese utility Kyushu Electric taking receipt of one cargo, traders said.

Earlier this week, sources said India's Gail had signed a preliminary deal with Shell for the potential sale of LNG supply from its portfolio, made up of U.S. production. (Additional reporting by Jacob Gronhot-Pedersen in Singapore; Editing by Susan Thomas)