Shizuoka Gas signs term LNG contract starting April 2027
Shizuoka Gas, a Japanese city gas utility, has signed a seven-year contract to import LNG starting April 2027 indexed at a 12% slope to Brent crude oil prices, traders told S&P Global Commodity Insights. Shizuoka is reportedly seeking to source five cargoes per year under the contract, concluded on a delivered ex-ship (DES) basis.
Pakistan seeks to re-sell LNG, considers floating storage
Pakistan LNG Ltd (PLL) is looking to resell excess cargoes and considers storing tankers offshore. Excess term LNG deliveries could incur state energy companies nearly $400 million in losses, especially since the rapid solar PV build-out cuts short the need of burning gas for generating electricity.
Price of oil-indexed and HH-linked LNG converges
Prices of delivered LNG into North-East Asia, the world’s premium gas market, are converging for oil-linked contracts and those indexed to the US Henry Hub. Most of recent term oil-linked deals for cargoes shipped to Asia have been in the 12.0%-12.5% DES range, while volumes available earlier from post-FID projects are attracting a premium.
ANALYSIS: Mind Australia's LNG boom
Project partners in North America rush to bring LNG to market before the Pacific Basin will be awash with Australian cargoes. However, scope for a second wave of projects is limited down under once the ongoing dozen projects are completed, the Economist Intelligence Units' lead energy analyst, Peter Kiernan, told LNG Journal.
