LNG Natural Gas Market Update – 8th – 12th May 2017

5 mins read

Market Analysis

Crude Oil

  • 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

  • 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.

Currency

  • 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.

Weather

  • 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

  • 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.
JKM, FOB Singapore & Monthly Japan Spot Des India, FOB ME & DKI SLNG Index
SWE LNG and Hub Based Gas Prices NWE LNG and Hub Based Gas Prices
FOB Gulf Coast, HH and HH Driven LNG

 

LNG Merchant Activity

LNG Natural Gas Market Update – 8th - 12th May 2017

  • 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