TTF’s premium to the Asian LNG spot price narrows sharply

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Editor’s Note: This content is provided courtesy of Independent Commodity Intelligence Services (ICIS). Visit natgasintel.com/icis for more information.

HOUSTON (ICIS) – The TTF first-month contract has fallen 31% since early October.

The TTF premium to the East Asia Index (EAX) was nearly $13.00/MMBtu at the start of October and has since narrowed to below 5.50 $/MMBtu, with the outright price also falling. Price differentials with other European hubs have also tightened in recent sessions.

The week saw some demand for LNG cargoes for December delivery, with South Korea entering the market with long-term demand.

Europe recorded its third highest imports in October, and the week saw Greek companies securing unloading slots at the Revithoussa terminal.

Tenders

Producer KUFPEC is selling FOB cargo from its Australian Wheatstone LNG plant for a December 19-24 loading window.

Japanese trading company Diamond Gas International (DGI) issued an FOB sale tender from Cameron’s US facility on Dec. 9. The call for tenders closes on November 4.

Middle Eastern producer Oman LNG has allocated at least 1 cargo close to $20.00/MMBtu on FOB basis since Qalhat facility. The call for tenders closed on November 1.

Oman had offered an FOB tender for two cargoes for loading from November 16 to 20 and the other for the end of December. A third FOB shipment may be offered in January.

In longer-term demand, South Korea’s KOSPO was looking for a 15-year supply for a maximum of 0.3 to 0.4 mtpy, starting in 2026. The tender closes November 7.

High European imports

In October, European LNG imports totaled 9.7 million tonnes, which was the third highest on record, according to data from ICIS LNG Edge. This includes the UK, but not Turkey.

By far, the United States was the largest source of supply by country with 4.1 million tonnes, the highest since April

The second source of supply was Qatar, bringing 1.9 million tonnes to Europe, in line with the previous two months.

No less than 55 shipments have confirmed their destinations in Europe for November, with most expected in the first half of the month.

Greek LNG capacity

Greek companies DEPA and Mytilineos, along with Hungarian company MET, secured 18 slots at DESFA’s auction on October 31 for unloading LNG cargoes at Greece’s 6 mtpa Revithoussa LNG terminal, according to local media .

There has been no official comment from DESFA, but something could be released in the coming days, sources in Greece say.

DEPA reportedly won eight slots, while Mytilineos and MET got five each

Japanese request

LNG inventories at Japan’s major electric utilities fell 1.96% from the previous week to 2.5 million tonnes as of Oct. 30, according to a notice from the Ministry of Economy, Commerce. and Industry (METI) of 2 November. This remains above the five-year LNG inventory average of 1.84 million tonnes and figures at the end of October last year of 2.07 million tonnes.

Disruption of Lake Charles

Pilot traffic was suspended in Lake Charles on Oct. 28 due to extreme weather, according to a notice from Moran Shipping.

Pilot services to Lake Charles resumed on the afternoon of October 29.

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