LNG Natural Gas Market Update – April 2017

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Market News

LNG

  • Stable market in Asia as summer buying has initiated. Deals were closed in Korea and Japan around $5.70/MMBtu level.
  • Tenders from Japan, Korea and Thailand kept the demand side strong.
  • Hot weather outlook in Asia is fuelling the demand whereas Europe weather outlook is dampening the heating demand.
  • Spanish demand grew by 8.4% inQ1, primarily due to colder weather in Q1.
  • Poland bought a cargo from Cheniere Energy for June delivery from Sabine Pass.
  • Australian government has introduced LNG export restrictions through a procedure base dupon advice from market operator and regular.
  • Lower LNG prices has enhanced Indian appetite for imported LNG, LNG import rose by 16.4% during first 11 months of 2016-2017 Indian fiscal year.
  • US Department of Energy has approve Golden Pass project for the export of 2.21 BCF/day to non FTA countries.

Crude Oil

  • Higher inventory stockpiles reported by EIA has dampened the sentiments for WTI and impacted Brent prices through out the week.
  • Russia reported production cut of 300,000 b/d.
  • Baker Hughes oil rig data exhibited 15th consecutive increase in oil rig with number reaching 697, while total rig count increased to 870 from 857 last week.
  • Market sentiments on Brent and other non WTI grades are positive on OPEC and Non OPEC countries may extend production cut.
  • Negative factors on crude oil prices are weaker than expected US GDP numbers of 0.7% increase.
  • US dollar rose after ECB left interest rates at zero, pushing WTI prices down.

Natural Gas

  • Henry Hub prices depicted strength and closed at $3.27/mmbtu primarily by speculators on warmer weather expectations.
  • Warmer weather expected in Asia, Europe and North America, which may decrease the natural gas demand in Europe and USA, however, demand in Asia to increase due to increase in air conditioner usage.
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

  • Five vessels carrying 17.59 BCF departed from Nigerian port for European and Taiwanese ports.
  • Eleven vessels with 34 BCF load departed from Australian terminals at Dampier and Gladstone for Asian destinations.
  • Middle Eastern terminals at Das Island (UAE) and Ras Lafan (Qatar) loaded 12 vessels carrying 37.75 BCF for Asian and European destinations.
  • Two cargoes totalling 6.48 BCF loaded this week from Sabina Pass.
Departure Date Vessel Name Capacity(CBM) Loading Port Discharge Port
23-Apr-17 Yensei River 205,958 Bonny, Nigeria Yung An, Taiwan
25-Apr-17 LNG ADAMAWA 142,656 Bonny, Nigeria Yung An, Taiwan
29-Apr-17 MARAN GAS ACHILLES 174,000 Bonny, Nigeria Not Known
28-Apr-17 MARAN GAS EFESSOS 159,800 Bonny, Nigeria Not Known
26-Apr-17 LNG PORT HARCOURT II 170,000 Bonny, Nigeria Europe
26-Apr-17 LNG EBISU 147,546 Dampier, Australia Himeji, Japan
26-Apr-17 NORTHWEST SEAEAGLE 125,541 Dampier, Australia Pacific Ocean
26-Apr-17 NORTHWEST SHEARWATER 125,660 Dampier, Australia Not Known
24-Apr-17 NORTHWEST SANDERLING 125,452 Dampier, Australia Not Known
29-Apr-17 MARAN GAS ULYSSES 174,000 Dampier, Australia Tokyo, Japan
27-Apr-17 DAPENG MOON 147,200 Dampier, Australia Shenzen, China
23-Apr-17 MRAWEH 135,000 DAS, UAE Not Known
27-Apr-17 UMM AL ASHTAN 137,000 DAS, UAE Tokushima, Japan
27-Apr-17 UMM AL ASHTAN 137000 DAS, UAE Tokushima, Japan
24-Apr-17 LNG Kolt 210,000 Gladstone AU Pyeongtaek, Korea
24-Apr-17 ARWA Spirit 175,180 Gladstone AU Zhuhai, China
24-Apr-17 CESI QINGDAO 136,026 Gladstone AU Qingdao, China
29-Apr-17 K.MUGUNGWHA 148,776 Gladstone AU Pohang, Korea
28-Apr-17 METHANE SHIRLEY ELISABETH 142,800 Gladstone AU Sodegaura, Japan
28-Apr-17 ARCTIC VOYAGER 140,071 MELKOYA, Norway SKAGEN, Denmark
27-Apr-17 CYGNUS PASSAGE 145,400 Prigorodnoye, Russia Anegasaki, Japan
24-Apr-17 AL REKAYYAT 145,000 Ras Lafan, Qatar Freest Germany
25-Apr-17 SK Summit 135,933 Ras Lafan, Qatar Pyeongtaek, Korea
25-Apr-17 TAITAR NO.2 144,627 Ras Lafan, Qatar Taichung, Taiwan
25-Apr-17 Al Dabeel 142,795 Ras Lafan, Qatar Taichung, Taiwan
26-Apr-17 AL RUWAIS 205,941 Ras Lafan, Qatar Mataphut, Thailand
29-Apr-17 DISHA 136,026 Ras Lafan, Qatar Dahej, India
29-Apr-17 AL KARAANA 205988 Ras Lafan, Qatar Europe
27-Apr-17 AL MARROUNA 149,539 Ras Lafan, Qatar Crossing Bay Eden
27-Apr-17 ASEEM 154,948 Ras Lafan, Qatar Dahej, India
24-Apr-17 OAK SPIRIT 143,708 Sabine Pass, US Atlantic for Orders
26-Apr-17 SCF MELAMPUS 170,200 Sabine Pass, US CRISTOBAL, Panama
25-Apr-17 Global Energy 74,130 Skikda, Algeria FOS SUR MER, France
Disclaimer: This is a personal analysis based upon public information and should not be used for buying and selling of commodities. This report can not be copied or redistributed without prior permission of Kaleem Asghar. 

Reproduced by permission of author.