LEAD STORY
Arbitrage scenarios show annual profit up to $39M a year on one cargo a month
Written byAlthough the UK’s National Balancing Point represents only a small part of the European market - around 18 .5 percent - Transatlantic arbitrage is considered for the purposes of my analysis under the NBP-New York Mercantile Exchange futures spread.
One cargo per month (around 3.16*106 million British thermal units) originally dedicated to the NBP-indexed market will be considered for a potential arbitrage diversion to the NYMEX-indexed market on the other side of the Atlantic.
Also in this issue
Automation challenges are set by next generation of LNG import terminals
Written byRomel Singh Bhullar, Technical Director, Fluor Corp, considers some strategies to stay among the leaders on the integration of control systems and monitoring
LNG plants already have a highly complex level of automation, both for process and safety as well as company-wide integration.
Add to this the demands from a variety of sources including stakeholders, traders, speculators, politicians and the wider public and it’s apparent the next generation of plants will be more advanced.
Brunei LNG delivers energy security 35 years after debut cargo to Japan
Written byMoon Hussain of Brunei LNG analyses future liquefaction and trade developments in his country and in Asia in general as competition rises
Brunei LNG, the oldest LNG exporter to Asia, plans for the future 35 years after the first of its more than 5,000 delivered cargoes left for Japan.
The company is in the midst of an asset rejuvenation programme, which will extend the longevity of a facility that sent its first cargo to Senboku in Japan in December 1972 and has also been a regular supplier to South Korea.
Qatar’s LNG pricing may need revising from Asian perspective
Written byAny regasification project looking for LNG deliveries in 2007-2012 will find there is very little volume left since the majority of liquefaction ventures have sold their planned output.
The next LNG supply push will come in 2012-2015, with possibly supply from Iran and expansions of projects such as Tangguh in Indonesia, Sakhalin in Russia and Gorgon and the Browse Basin in Australia.
John McKay
The creation of an LNG financial derivative and a liquid market for trading a cargo-based contract is a challenge facing an industry which up to now has traded its commodity based solely on the value of pipeline natural gas or crude oil.
International Mercantile Exchange Holdings (IMEX), the developers of an energy bourse in Qatar, is considering creating a derivative to service the spot LNG cargo market and has hired Steve McMillan, former European head of global inter-dealer brokerage GFI, as its Chief Executive.
