LNG

Aug 22 (LNGJ) - The results of Australia's North West Shelf LNG tender for cargoes loading in September, October and November indicate "a steep contango building into the traditionally high-demand winter season," analysts said.

This prompted some buyers in Japan to purchase cargoes for October at prices significantly above levels around $10.70/MMBtu seen in September.

Aug 22 (LNGJ) - Prices of spot LNG for September delivery to Asian markets have plummeted 33.1% year-on-year (y-o-y) to an average $10.702/MMBtu, the latest Platts Japan/Korea Marker for month-ahead delivery shows.

The drop came as increased supply in the region continued to outweigh lackluster demand. On a month-on-month basis, the September JKM was down 5.8% from August.

Breaking Gazprom's 100% gas supply monopoly, Litgas, the trading arm of Lietuvos Energija, has signed a 5-year LNG supply deal with Norway's Statoil at an estimated value of up to €870 million.

British Columbia supports LNG export projects as a "once in a generation" opportunity, according to Rose Klukas, Kitimat's economic development officer; but the clock is ticking as falling gas prices in Asia could close that window of opportunity.

Countering the Panama Canal expansion operational from early 2015, the Egyptian government is evaluating plans to spend $4 billion on building a new widened shipping lane besides the Suez Canal. The move to a bi-directional lane would facilitate the transit of more Q-Flex LNG vessels.

If US LNG volumes do eventually reach Europe, there is a huge capacity for Russia's Gazprom to beat them on costs of production and delivery, analysts said, stressing Asia will remain the key target market for cargoes from North America regardless of continued unrest in Ukraine.

Aug 21 (LNGJ) - Project sponsors of the $10 billion Cameron LNG project concluded debt financing and are expected to make their first draw-down in September.

Financing secured for the project amounts to $7.4 billion, based on commitments from the Japan Bank for International Cooperation and 29 commercial lenders. Sponsors took FID on August 6.

Aug 21 (LNGJ) - Japan's largest oil and gas explorer Inpex has agreed to sell a 1.2% stake in Australia's Ichthys LNG project to Japanese utility Kansai Electric Power Co.

The deal reduces Inpex shareholding to 62.25% and follows Kansai's commitment to buy 800,000 tonnes of LNG per year from the project over a period of 15 years starting from 2017.

The liquefaction terminal, which counts Total and others as shareholders, is slated to start-up before the end of 2016.

LNG imports to Japan have reached a new record, surging 5.7% year-on-year to 7.84 million tons in July due to rising seasonal demand from utilities as the nuclear void continues, government data shows.

The insurance risk of Arctic LNG carriers, fitted with Azipod propulsion units and worth around $400 million, may not have been properly calculated, UK-based marine insurer Marsh warned.