Asian LNG cargo prices move higher as European gas values drop and oil surges amid rise in Iran-Israel tensions
Asian liquefied natural gas cargo prices moved higher in the past week while European Union natural gas values declined, opening trading opportunities while crude oil prices jumped to seven-month highs and Middle East geopolitical tensions increased.
Italian gas grid operator and LNG terminals owner SNAM increases earnings as Ravenna facility advances
SNAM, the Italian gas grid operator and liquefied natural gas import terminals owner, reported an almost 70 percent surge in net profits as it advanced with its latest floating LNG venture at Ravenna on Italy’s East Coast.
Full set of offset
March 15 (LNGJ) - Off-setting, a form of self-imposed taxation thought up by the green lobby and marketed by US investment banks and now being followed worldwide by the energy industry, has moved on to the condensate sector. Western Australian LNG plant operator Woodside Petroleum and its Pluto LNG joint venture participants, Japanese utilities Kansai Electric Power and Tokyo Gas, said they delivered their first cargo of carbon-offset condensate to global commodity trading company Trafigura from the Pluto facility on the Burrup Peninsula.
“The carbon-dioxide equivalent emissions associated with extraction, storage and shipping of the 650,000-barrel cargo will be offset through a combination of efficiency measures, which reduce emissions,” said a statement. “High-quality carbon offsets have been sourced from nature-based projects located in the Asia-Pacific region, independently validated and verified by the Gold Standard or Verified Carbon Standard,” it added.
Singapore LNG prices edge higher with July North Asia summer cargoes setting the pace
Singapore LNG spot cargo indices began moving to levels above the $5.500 per million British thermal units mark as July quotations made an appearance for North Asia just below US$5.800.
The Singapore average index for June was at US$5.203 per MMBtu, rising from last week’s May average of US$4.876 per MMBtu.
Singapore’s latest LNG indices released on April 18 included a price of US$5.055 per MMBtu for the second half of May and higher at US$5.136 per MMBtu for the first half of June.
Prices were quoted on the basis of the surplus in global LNG supplies as Northern Hemisphere summer season trades began amid a solid crude oil price this week of over $70 per barrel.
Cargo prices for the second half of June were at US$5.270 and were higher for the first half of July at US$5.395.
The Sling is an index series for LNG developed by the Singapore Exchange (SGX) and its subsidiary Energy Market Company (EMC).
It is a spot index for cargoes “on the waters in the vicinity of Singapore which could go into any port” and based on cargo sizes of 135,000 cubic metres capacity to 175,000 cubic metres capacity.
The North Asia price increased to a June average of US$5.554 per MMBtu versus last week’s May average of US$5.100 per MMBtu.
North Asia cargoes for the second half of May were at US$5.386 per MMBtu, before rising for the first half of June to US$5.469 per MMBtu, then jumping to US$5.639 for the second half of June.
The first half of July quote for North Asia was the highest on the board at US$5.788 per MMBtu.
The North Asia prices are for delivery ex-ship (DES) to all ports in Japan, Korea, Taiwan and China.
The Dubai-Kuwait-India Sling index is assessed in collaboration with London-based, inter-dealer global brokerage Tullett Prebon for regional cargoes shipped to India and the Middle East and averaged US$5.327 per MMBtu for June, an increase from last week’s May average of US$4.990 per MMBtu.
The DKI index, based on a cargo of between 138,000 cubic metres capacity and 170,000 cubic metres, is seen in the second half of May at US$5.197 per MMBtu before increasing to US$5.253 per MMBtu for the first half of June.
The price for the second half of June jumped to US$5.400 per MMBtu and increased further for the first half of July to US$5.533 per MMBtu.
The SGX LNG Index Group (Sling) is an initiative by SGX and EMC for spot LNG price discovery.
It is a benchmark based on assessments of LNG cargo value by market participants. They provide assessments based on the value of an LNG cargo at a specific location for delivery.
The Sling is based on participants submitting assessments to determine an index value.
“The participant pool consists of a broad group of market players to ensure that any Sling Assessment is as representative of actual market conditions as possible,” says the SGX, while pointing out that the participant is kept confidential at all times.
The SGX-EMC LNG prices include both lean and rich cargoes.
June cargo deliveries
June 5 (LNGJ) - The 154,900 cubic metres capacity carrier “Trinity Arrow” will deliver a shipment on June 5 to the Zeebrugge terminal in Belgium from the Ras Laffan plant in Qatar. The 210,100 cubic metres capacity Q-Flex vessel “Fraiha” will deliver a Qatargas shipment on June 7 to the Aliaga facility near Izmir in Turkey. The 155,000 cubic metres capacity vessel “British Ruby” will deliver a cargo on June 9 to the Pakistani Port Qasim import facilities near Karachi from the Trinidad plant at Point Fortin in the Caribbean. The 147,200 cubic metres capacity carrier “Arctic Princess” will unload a shipment on June 10 at the Baltic port of Klaipeda in Lithuania from the Hammerfest plant in Norway, operated by Equinor. The 160,400 cubic metres capacity carrier “Soyo” will unload a shipment on June 12 at the Indian Hazira terminal, operated by Shell India, from the Angola plant in southwest Africa. The 176,800 cubic metres vessel “LNG Lagos II” is scheduled to unload a shipment on June 25 at the Map Ta Phut terminal in Thailand from the Nigerian export plant on Bonny Island.
Singapore LNG indices at robust levels for time of year with July North Asia over $8.00 mark
The Singapore LNG cargo indices are still at robust levels for the time of year, mostly remaining well above the US$7.00 per million British thermal units from the second half of May through to the first half of July, though with North Asia shipments for July breaking the $8.00 per MMBtu barrier.
LNG carrier movements
Jan 13 (LNGJ) - The 141,000 cubic metres capacity “LNG Cross River” is scheduled to deliver a cargo to the Portuguese import terminal of Sines, located south of Lisbon, on January 16 from the Bonny Island export plant in Nigeria, according to shipping data. The 145,000 cubic metres capacity vessel “Al Deebel” is scheduled to deliver a shipment on January 19 to the Egyptian port of Ain Sokhna in the Gulf of Suez from the Qatari export complex at Ras Laffan. The 210,100 cubic metres capacity Q-Flex carrier “Al Ghariya” is expected to unload a shipment from Qatargas on January 20 at the Incheon terminal in South Korea. The 155,000 cubic metres capacity vessel “GasLog Singapore” will arrive at Port Moresby in Papua New Guinea on January 17 to lift a cargo for North Asia.
