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.


  • 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.
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

  • 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