LNG Natural Gas Market Update – 12th – 16th June 2017

By

7 mins read

Market Analysis

Crude Oil

  • Crude oil remained weak during the week with WTI closed at $44.74/BBL and Brent closed at $47.37/BBL on Friday.
  • OPEC monthly out report depicted increase of 0.33 million barrel a day primarily from Nigeria and Libya, which are not part of production cut deal.
  • Libyan National Oil Corporation claimed to reach 900,000 bpd within June 2017 and 1 million barrels by end July.
  • EIA Weekly report recorded an inventory draw of 1.66 million barrels with stock at 511.5 million barrel on 6th June 2017 with the market expecting a draw of 2.5 million barrels.
  • EIA Gasoline data also put pressure on crude prices, as there is a build up of 2.10 million barrels with stock standing at 242.4 million barrels, depicting higher utilization rates at refinery along with weaker demand.
  • Consistent increase of US production increase with oil rigs number at 747, an increase of 6 and gas rigs increase by 1 negated by a decrease by 1 on miscellaneous rigs by one, and total rig count stands at 933.

Natural Gas

  • Henry Hub prices closed on $3.03/MMBTU on Friday.
  • US Henry Hub prices jumped by 4.2% at $3.05/MMBTU on Thursday after EIA showed a smaller-than-expected inventory increase.
  • S. natural gas stocks increased by 78 billion cubic feet for the week ending June 9.
  • Henry Hub prices remained weak at the start of the week due to cooler than normal temperature forecast to cover most of the United States.
  • Demand for next week remains moderate as higher temperature in eastern half along with cooler temperature forecast across northern and east central regions.
  • NBP fallen due to weak demand across the UK as the weather is increasingly warm and expected to remain warm.
  • Dutch and French gas prices remained weak due to weaker demand, TTF and TRS France closed at the equivalent of $4.82/MMBTU on Friday.
  • Imports from Norway to the continent have been stable along with strong LNG send outs from Gate and Montoir.

Currency

  • The US dollar remains relatively strong post the Federal Reserve rate hike last Wednesday, US DXY closed at rose to 97.14 on Friday.
  • USD strength came from the Fed raising the interest rates from 1.00% to 1.25%, in a widely expected move.
  • Dollar also got support from US labor data with initial jobless claims in the week ending June 10 decreased by 8,000 to 237,000 from the previous week’s total of 245,000.
  • Euro/USD remain volatile during the week, with closing at 1.1146 level on Friday.
  • GBP/USD remained volatile during the week and closed at above 1.2750 level, as after the Bank of England left its monetary policy unchanged, in line with expectations, but members of the Monetary Policy Committee surprised markets with three dissents.

Weather

  • European weather remained in spring and will follow the same pattern across Europe for next week with Spain, Portugal, and France in the summer season.
  • Cooler temperature in Argentina and Brazil, with temperature range for Argentina, is 15-20oC and Brazil around 25oC-30oC for next week.
  • Mexico will be around 23 -27oC and expected to remain same for next week.
  • Middle East summer season in full swing with Egypt 35oC plus, Kuwait is 45oC plus, and Dubai temperature is going to be around low 40o
  • Indian Subcontinent in hot summer season: with temperature ranging between 35oC -40oC in Pakistan and India for next week.
  • Summer season in North East Asia, with the temperature around 27 -30oC in Taiwan, 25-28oC in Korea, China 27 -35oC, and Japan is around 25oC for next week.
  • South East Asia already in hot weather with temperature in low 30o
  • USA Weather:  Overall weather remained cooler than seasonal limits with east cost is getting warm.

LNG

  • Weaker demand kept the prices down in the Asian market with JKM at $5.40/MMBTU, FOB Singapore $5.19/MMBTU, SLNG DKI Index at $5.32/MMBTU.
  • European gas hub prices remained weak with TTF at $4.82/MMBTU, PEG & TRS both at the equivalent of $4.82/MMBTU and Spanish market in high $5.50/MMBTU level.
  • East of Atlantic market based upon Nigerian and Norwegian supply region is ranging between $5.20 -$5.30 net back based upon Spanish hub prices.
  • North Eastern buyers from Taiwan and Japan remained on the sideline with Komipo Power securing one July delivery cargo at $5.60/MMBTU as per market news.
  • Some demand emerging from India as GSPC had re-issued a tender, which they canceled earlier.
  • As per market news, Jordan’s NEPCO paid in the mid $5 per MMBTU for an August cargo.
  • Qatargas signed an agreement with Shell for the delivery of up to 1.1 million tons of liquefied natural gas (LNG) per year for five years.
  • Smaller vessels still using Suez Canal, however one vessel Al Mafyr on its way to South Hook via Africa.
  • Taiwan have received it first ever cargo from Sabine Pass via Cadiz Knutsen
  • carrying 2.79 BCF of LNG, which makes it the 23rd country to receive US cargo.
  • Qatar is back on managing its business with shipping line operating from Oman instead of UAE and food supply options are numerous like Brazil, Far East, however, any interference on LNG export poses a major threat of escalating the crises.
  • Recent Qatar crisis has given strength to Japanese buyers in term of reviewing long term LNG supply contracts and will attempt seek more flexible terms.
  • Donggi-Senoro LNG plant in Indonesia has dispatched 18 cargoes of the chilled fuel by June 2 this year.
  • LNG exports from the three liquefaction plants located on Curtis Island offshore Gladstone reached 1.68 million mt during May, a rise of almost 13 percent as compared to May last year.
  • Climate control results are coming with 13 Japanese trading houses are moving away from thermal coal which will support LNG and Petcoke demand.
  • ENI has signed up $8bn agreement to develop gas field off the coast of Mozambique with formally approving a FLNG terminal.
  • Greece, Israel, and Cyprus plan to focus on developing gas pipeline and utilization of Egypt’s LNG assets for European and Turkish. The planned project will be utilizing the gas field of Cyprus and Israel and 2025 is the target completion date.
  • Bangladesh Petrobangla signs an MOU with AOT energy to supply 1.75 MTPA of LNG by mid of 2018.
  • Pakistan has shelved $2 billion IP gas line project and now focusing more on setting up the infrastructure for imported LNG. There is a project under development for setting up Karachi-Lahore pipeline in which Qatar has shown interest to develop the project.
  • Australian Energy Market Operator has revised its outlook on gas shortage, however still emphasizing on a remedial action in case of an extreme condition like summer season.
LNG Natural Gas Market Update – 12th - 16th June  2017 LNG Natural Gas Market Update – 12th - 16th June  2017
LNG Natural Gas Market Update – 12th - 16th June  2017 LNG Natural Gas Market Update – 12th - 16th June  2017
LNG Natural Gas Market Update – 12th - 16th June  2017 LNG Natural Gas Market Update – 12th - 16th June  2017

LNG Merchant Activity

LNG Natural Gas Market Update – 12th - 16th June  2017

  • This week 57 vessels carrying 3.57 million tons (182.09 BCF) loaded from various supply centers, decrease by 0.58 million tons from last week.
  • Six vessels carrying 20.39 BCF departed from Nigerian port for European and Asian locations, one destined for Egypt.
  • Algeria loaded two vessels carrying 3.06 BCF for Spain.
  • Pont Fortin, Trinidad & Tobago loaded four vessels with 12.4 BCF.
  • Four vessels loaded this week from Sabine Pass, USA with 115.69 BCF destined for South America and European ports.
  • Two vessels loaded from Brunei with a load of 4.34 BCF.
  • One vessel departed from Russia carrying 3.01 BCF for China.
  • 10 vessels left from Australian export terminals of Dampier, Darwin and Gladstone ports for Japan, China, and Singapore carrying 33.29 BCF.
  • Middle Eastern terminals at Das Island (UAE), Qalhat (Oman) and Ras Lafan (Qatar) loaded 21 vessels carrying 61.87 BCF for Asian destinations. Three vessels destined for Indian & Pakistani ports carrying 8.95 BCF.
Departure Date Vessel Name Capacity (CBM) Loading Port Discharge Port ETA Discharge Port LNG (BCF)
11-Jun-17 BRITISH RUBY 155,000 Bonny, Nigeria Dafeng, China 15-Jul-17  3.20
13-Jun-17 COOL RUNNER 160,000 Bonny, Nigeria Atlantic Ocean 21-Jun-17  3.30
13-Jun-17 GASLOG GREECE 174,000 Bonny, Nigeria Not Known 08-Jul-17  3.59
13-Jun-17 COOL RUNNER 160,000 Bonny, Nigeria Atlantic Ocean 21-Jun-17  3.30
15-Jun-17 LNG BONNY II 177,000 Bonny, Nigeria Asia 18-Jun-17  3.65
16-Jun-17 BW GDF SUEZ PARIS 162,524 Bonny, Nigeria Sokhna, Egypt 06-Jul-17  3.35
11-Jun-17 CHEIKH EL MOKRANI 73,990 Skikda, Algeria Barcelona, Spain 13-Jun-17  1.53
16-Jun-17 GLOBAL ENERGY 74,130 Skikda, Algeria Fos Sur Mer, France 18-Jun-17  1.53
11-Jun-17 BILBAO KNUTSEN 135,049 Pampa Melchorita, Peru Atlantic Basin 25-Jun-17  2.79
15-Jun-17 METHANE NILE EAGLE 145,000 Pampa Melchorita, Peru London, UK 21-Jun-17  2.99
12-Jun-17 BW GDF SUEZ EVERETT 138,028 Point Fortin, Trinidad North Atlantic  2.85
11-Jun-17 MARAN GAS AGAMEMNON 174,000 Point Fortin, Trinidad Pacific Ocean 28-Jun-17  3.59
14-Jun-17 GASLOG SEATTLE 154,948 Point Fortin, Trinidad Mediterrian 30-Jun-17  3.20
16-Jun-17 CASTILLO DE VILLALBA 135,420 Point Fortin, Trinidad  2.79
12-Jun-17 CREOLE SPIRIT 173,400 Sabine Pass, USA  3.58
11-Jun-17 TORBEN SPIRIT 235,000 Sabine Pass, USA Atlantic Basin 15-Jun-17  4.85
15-Jun-17 HYUNDAI PRINCEPIA 178,602 Sabine Pass, USA Cristobal, Panama 20-Jun-17  3.68
14-Jun-17 CASTILLO DE SANTISTEBAN 173,673 Sabine Pass, USA Cristobal, Panama 18-Jun-17  3.58
16-Jun-17 SURYA AKI 50,600 Bintulu, Malaysia Hiroshima,Japan 22-Jun-17  1.04
11-Jun-17 GOLAR MAZO 135,000 Bontang, Indonesia Not Known 20-Jun-17  2.79
16-Jun-17 GASLOG SINGAPORE 154,948 Bontang, Indonesia Pacific Basin  3.20
13-Jun-17 GIGIRA LAITEBO 173,870 Lese, Papua New Guinea Yeosu, Korea 22-Jun-17  3.59
15-Jun-17 PACIFIC ARCADIA 145,400 Lese, Papua New Guinea Chiba, Japan 29-Jun-17  3.00
15-Jun-17 GRAND MEREYA 145,964 Prigorodnoye, Russia Jiangyn, China 21-Jun-17  3.01
12-Jun-17 ABADI 135,269 Sieria Oil Terminal, Brunei Oita, Japan 19-Jun-17  2.79
13-Jun-17 BELANAK 75,000 Sieria Oil Terminal, Brunei  1.55
13-Jun-17 NORTHWEST SANDERLING 125,452 Dampier, Australia Pacific Ocean 28-Jun-17  2.59
11-Jun-17 LNG EBISU 147,546 Dampier, Australia Himeji, Japan 24-Jun-17  3.04
13-Jun-17 LNG KOLT 210,000 Dampier, Australia Pyeongtaek, Korea 24-Jun-17  4.33
15-Jun-17 WOODSIDE ROGERS 159,800 Dampier, Australia Pacific Basin 27-Jun-17  3.30
16-Jun-17 PACIFIC ENLIGHTEN 147,800 Dampier, Australia Oita, Japan 26-Jun-17  3.05
16-Jun-17 WOODSIDE CHANEY 174,000 Dampier, Australia Pacific Basin 03-Jul-17  3.59
14-Jun-17 ALTO ACRUX 147,978 Darwin, Australia Kisarazu, Japan 19-Jun-17  3.05
13-Jun-17 MARAN GAS ACHILLES 174,000 Gladstone, Australia Not Known 24-Jun-17  3.59
12-Jun-17 LNG SATURN 153,000 Gladstone, Australia Qindago, China 22-Jun-17  3.16
15-Jun-17 CESI GLADSTONE 174,000 Gladstone, Australia Beihei, China 26-Jun-17  3.59
13-Jun-17 MUBARAZ 135,000 Das, UAE Kawasaki, Japan 01-Jul-17  2.79
16-Jun-17 GHASHA 137,100 Das, UAE Tokyo, Japan 04-Jul-17  2.83
16-Jun-17 IBRA LNG 145,951 Qalhat, Oman Abu Dhabi, UAE 17-Jul-17  3.01
11-Jun-17 AL AAMRIYA 206,958 Ras Laffan, Qatar Barcelona, Spain 16-Jul-17  4.27
11-Jun-17 ASEEM 154,948 Ras Laffan, Qatar Dahej, India 14-Jun-17  3.20
13-Jun-17 DISHA 136,026 Ras Laffan, Qatar Dahej, India 21-Jun-17  2.81
12-Jun-17 MILAHA RAS LAFFAN 136,199 Ras Laffan, Qatar Far East 26-Jun-17  2.81
16-Jun-17 DUHAIL 210,100 Ras Laffan, Qatar Incheon, Korea 01-Jul-17  4.33
16-Jun-17 MARAN GAS ASCLEPIUS 142,906 Ras Laffan, Qatar Indian Ocean 20-Jun-17  2.95
13-Jun-17 AL SHAMAL 213,536 Ras Laffan, Qatar MinaAhmadi, Kuwait 17-Jun-17  4.41
12-Jun-17 AL NUAMAN 205,981 Ras Laffan, Qatar Not Known  4.25
12-Jun-17 UMM BAB 143,708 Ras Laffan, Qatar Not Known 21-Jun-17  2.96
16-Jun-17 HL RAS LAFFAN 185,000 Ras Laffan, Qatar Pyeongtaek, Korea 01-Jul-17  3.82
12-Jun-17 ZEKREET 178,200 Ras Laffan, Qatar Singapore 21-Jun-17  3.68
11-Jun-17 DOHA 135,200 Ras Laffan, Qatar Singapore 20-Jun-17  2.79
15-Jun-17 AL ZUBARAH 135,510 Ras Laffan, Qatar Singapore 26-Jun-17  2.80
11-Jun-17 WILPRIDE 156,007 Ras Laffan, Qatar Suez Canal 18-Jun-17  3.22
15-Jun-17 MURWAB 205,971 Ras Laffan, Qatar Suez Canal 28-Jun-17  4.25
15-Jun-17 AL DAAYEN 148,853 Ras Laffan, Qatar Suez Canal, Egypt 25-Jun-17  3.07
16-Jun-17 TAITAR NO.1 154,948 Ras Laffan, Qatar Taichung, Taiwan 30-Jun-17  3.20
14-Jun-17 AL AREESH 148,786 Ras Laffan, Qatar 22-Jun-17  3.07