LNG Natural Gas Market Update – 8th – 12th May 2017
- Brent started recovering from mid-week & recovered 4.43% from Tuesday price of $48.73/bbl.
- Brent uptick is primarily due EIA inventory numbers which depicted 5.2 million barrel of commercial inventory decrease and 0.2 million barrels of gasoline.
- The US inventory draw dawn needs to be monitored closely as last week crude prices were down primarily on technical.
- AS per BHI, US rig count increase by 8 and now stand at 885.
- Market expecting OPEC to maintain the oil cut for next six months as this perhaps is the only news, which can sustain oil prices.
- Natural gas prices surge by 8.01% this week primarily lower than expected built up of inventories. AS per EIA, working gas inventories is 2,301 BCF on May 5, lower increase than expected increase of 53 BCF.
- Recent uptick is primarily due to positive sentiments in the market as US and China agreed to bolster trade.
- Natural gas wholesale prices at European hubs witnessed sharp decrease with more than 4% plunge at NBP, TTF, GPL & TRS.
- Mild weather has been a major reason for downward price movement in Europe.
- According to experts, TTF is transforming into more acceptable marker in Europe.
- US dollar face pressure on disappointing news on American inflation and retail sales. Right now trading at 1.0909 against Euro, down by 0.44%.
- Euro depicted strength due to stronger German growth news from 0.4% to 0.6% expansion.
- GBP took a hit on Thursday due to BOE decision of keeping Interest rate unchanged and downward revision of estimated growth from 2.0% to 1.9%. Trading currently at 1.2882 from 1.2939 at the start of the week.
- Spring season in full swing in Europe, North & South America.
- Middle East and Asia is facing hot temperature.
- Europe temperature remained mild from 15o-20o
- Middle East in low 30o C, whereas Indian Subcontinent is facing hot temperature of around 35o
- North East and South East Asia regions are also entering into summer with mercury ranging between 25o – 30o
- South America is also witnessing moderate temperature.
- Weather outlook is same for coming week, which means additional requirement from Asian markets and subdued interest from Europe.
- LNG prices moved south in the markets of Japan, Korea and Taiwan, primarily due to lower demand from Europe and supply abundance. Friday LNG prices were heard at mid $5/MMBTU level.
- Prices in India also down throughout the week as India is taking advantage of supply glut.
- Storage tanks are full in India and with monsoon approaching, Dabhol terminal will not be accessible for vessels.
- Prices in Europe witnessed decrease by 1%, primarily due to mild weather and lower wholesale prices.
- On the supply side Angola has put one cargo on tender for Mid-May loading, while Nigeria has supply available and closed a tender for May delivery.
- Indonesia Bontang plant also issued a tender for June and July loading.
- US and China agreement on trade created excitement in the LNG sector, however US Henry Hub prices are still not workable for Chinese markets.
- Cheniere Energy already in discussion with Chinese State owned companies for supply of LNG in long term basis. So far Cheniere has sold nine cargoes on spot basis to China.
- Number of gas discoveries has compelled Egypt to reduce it dependence on imported LNG, with deferring cargoes in 2017 and aim to cut it further to 30 cargoes in 2018.
- Sinopec has finished building its third LNG terminal, located in the northern Chinese port city of Tianjin. The terminal has the capacity to manage 3 MTPA (400 MMSCFD).
- Lebanon plans to moor three FSRUs along its coastline.
- Petronas is focusing on South East region of Pakistan, India and Bangladesh for supply of LNG.
- Thailand’s PTT plans to expand its LNG import facility by setting up another LNG import terminal with 7.5 MTPA capacity.
- Overall demand in Asia expect to pickup in coming weeks due to summer demand.
LNG Merchant Activity
- This week 52 vessels carrying 3.5 million tons (178.40 BCF) loaded from various ports across the globe.
- Six vessels carrying 20.74 BCF departed from Nigerian port for European and Asian destinations.
- One vessel left from Equatorial Guinea carrying 2.99 BCF.
- Pont Fortin, Trinidad & Tobago loaded two vessels with 5.65 BCF.
- 3 vessels loaded this week from Sabine Pass, USA.
- Two vessels departed from Russia carrying 6.07 BCF.
- 12 vessels left from Australian export terminals at Darwin, Dampier and Gladstone ports for Japan, China and Singapore carrying 39.14 BCF.
- Middle Eastern terminals at Das Island (UAE), Qalhat (Oman) and Ras Lafan (Qatar) loaded 21 vessels carrying 73.73 BCF for Asian destinations.
- 18 BCF loaded onto 3 vessels from Indonesia.
|Departure Date||Vessel Name||Capacity(CBM)||Loading Port||Discharge Port||ETA Discharge Port|
|8-May-17||LNG BAYELSA||137,500||Bonny, Nigeria||Europe||22-May-17|
|8-May-17||METHANE JANE ELIZABETH||145,000||Bonny, Nigeria||Manzanillo, Cuba||27-May-17|
|7-May-17||RIOJA KNUTSEN||176,300||Bonny, Nigeria||Not Known||29-May-17|
|10-May-17||LNG BONNY II||177,000||Bonny, Nigeria||Montoir, France||30-May-17|
|12-May-17||LNG RIVERS||137,500||Bonny, Nigeria||Asa, Japan||05-Jun-17|
|12-May-17||GASLOG GLASGOW||232,000||Bonny, Nigeria||Not Known|
|9-May-17||METHANE LYDON VOLNEY||145,000||Punta Europe, Equ. Guinea||Not Known||07-Jun-17|
|9-May-17||CATALUNYA SPIRIT||135,423||Point Fortin, Trinidad||Escobar, Argentina||21-May-17|
|12-May-17||BRITISH TRADER||138,248||Point Fortin, Trinidad||Not Known|
|6-May-17||MAGELLAN SPIRIT||163,194||Sabine Pass, USA||Not Known|
|9-May-17||MARAN GAS AMPHIPOLIS||173,400||Sabine Pass, USA||Not Known|
|12-May-17||GASLOG CHELSEA||153,000||Sabine Pass, USA||Atlantic Basin||16-May-17|
|8-May-17||GOLAR MAZO||135,000||Bontang, Indonesia||Not Known||23-May-17|
|9-May-17||SENSHU MARU||125,835||Bontang, Indonesia||Within Indonesia|
|10-May-17||SK SPLENDOR||135,540||MIBGas LNG, Indonesia||Tyongeong, Korea||16-May-17|
|9-May-17||ENERGY NAVIGATOR||147,558||Prigorodnoye, Russia||Ishikari, Japan||13-May-17|
|12-May-17||CLEAN ENERGY||146,794||Prigorodnoye, Russia||Not Known|
|7-May-17||METHANE MICKIE HARPER||167,400||Dampier, Australia||Not Known||25-May-17|
|9-May-17||ENERGY FRONTIER||144,596||Dampier, Australia||Nagoya, Japan||19-May-17|
|11-May-17||WOODSIDE CHANEY||174,000||Dampier, Australia||Pacific Ocean||21-May-17|
|12-May-17||WOODSIDE DONALDSON||162,620||Dampier, Australia||Incheon, Korea||23-May-17|
|11-May-17||WOODSIDE CHANEY||174,000||Dampier, Australia||Pacific Ocean||21-May-17|
|7-May-17||ALTO ACRUX||147,978||Darwin, Australia||Kisarazu, Japan||17-May-17|
|8-May-17||GASLOG SANTIAGO||154,948||Gladstone, Australia||Zhuhai, China||18-May-17|
|8-May-17||CLEAN PLANET||162,000||Gladstone, Australia||Tianjin, China||20-May-17|
|7-May-17||YK SOVEREIGN||124,582||Gladstone, Australia||Pyeongtaek, Korea||18-May-17|
|10-May-17||CESI GLADSTONE||174,000||Gladstone, Australia||Qindago, China||19-May-17|
|10-May-17||HYUNDAI ECOPIA||146,790||Gladstone, Australia||Tyongeong, Korea||23-May-17|
|12-May-17||MARAN GAS POSIDONIA||164,000||Gladstone, Australia||22-May-17|
|9-May-17||MERIDIAN SPIRIT||163,285||Melkoya, Norway||Dunkirk, France||13-May-17|
|10-May-17||ARCTIC PRINCESS||147,835||Melkoya, Norway||KlaiPeda, Lithuania||16-May-17|
|10-May-17||UMM SLAL||260,928||Milford Haven, UK||TENERIFE, Spain||14-May-17|
|9-May-17||SHAHAMAH||137,756||Das Island, UAE||Kawasaki, Japan||25-May-17|
|12-May-17||HYUNDAI OCEANPIA||134,300||Qalhat, Oman||Tyongeong, Korea||21-May-17|
|8-May-17||DISHA||136,026||Ras Laffan, Qatar||Dahej, India||11-May-17|
|8-May-17||AL ZUBARAH||135,510||Ras Laffan, Qatar||Yokkaichi, Japan||25-May-17|
|7-May-17||MILAHA QATAR||145410||Ras Laffan, Qatar||Egypt||14-May-17|
|7-May-17||BU SAMRA||260,928||Ras Laffan, Qatar||Western Europe|
|7-May-17||DUHAIL||210100||Ras Laffan, Qatar||Egypt||14-May-17|
|8-May-17||MARAN GAS MYSTRAS||159,800||Ras Laffan, Qatar||Not Known|
|7-May-17||ZEKREET||178,200||Ras Laffan, Qatar||Yokkaichi, Japan||23-May-17|
|7-May-17||HYUNDAI TECHNOPIA||134,524||Ras Laffan, Qatar||Incheon, Korea||22-May-17|
|6-May-17||TAITAR NO.3||144,627||Ras Laffan, Qatar||Tachung, Taiwan||19-May-17|
|9-May-17||AL NUAMAN||205,981||Ras Laffan, Qatar||Freest, Germany|
|9-May-17||AL ZUBARAH||135,510||Ras Laffan, Qatar||Yokkaichi, Japan||25-May-17|
|10-May-17||AL SAHLA||211,842||Ras Laffan, Qatar||Dahej, India||13-May-17|
|10-May-17||AL JASSASIYA||142,988||Ras Laffan, Qatar||Not Known||23-May-17|
|11-May-17||AL GHARIYA||205,941||Ras Laffan, Qatar||Tokyo, Japan||30-May-17|
|11-May-17||AL SAFLIYA||210,100||Ras Laffan, Qatar||Not Known|
|12-May-17||UMM BAB||143,708||Ras Laffan, Qatar||Not Known||16-May-17|
|12-May-17||AL MAYEDA||261,157||Ras Laffan, Qatar||Not Known|
|12-May-17||BROOG||136,359||Ras Laffan, Qatar||Not Known|