Global LNG-Prices firm on burst of Middle East demand

Global LNG-Prices firm on burst of Middle East demand

Asian liquefied natural gas (LNG) spot prices for September delivery were firm on Friday as tenders launched by newcomers Egypt, Jordan and Pakistan supported the market.

The price of Asian spot cargoes edged up to $7.80 per million British thermal units (mmBtu), from $7.70 the previous week.

“Demand in the Middle East is quite strong, it’s supporting summer demand definitely,” said an industry source.

In recent months countries including Jordan, Pakistan and Egypt have launched new LNG import facilities, with the Middle East and North Africa expected to be one of the strongest growth regions in terms of demand going forward.

Egypt’s state-owned gas company EGAS has tendered to buy 45 cargoes of LNG for delivery in 2015/16, with the cargoes expected to service the country’s second import terminal.

Meanwhile, Pakistan Oil Co has launched a tender to buy eight LNG cargoes for delivery between August and December and Jordan has tendered to buy two cargoes for September shipment.

Traders said it remained difficult to get a clear view of pricing, as the number of deals concluded this week was minimal.

“There’s not been an awful lot of execution, so not a lot of actual price points, but sentiment has probably been a bit stronger,” said a trader.

India’s Gail is seeking to sell about six cargoes on a free-on-board basis from its stake in U.S.-based Cheniere Energy, which owns Sabine Pass Liquefaction terminal, sources said this week.

Traders were also monitoring the outcome of Gail’s tender issued earlier this month to buy two liquefied natural gas (LNG) cargoes for prompt delivery.

Ukraine is still short of the 18-19 bcm it aims to have in reserve before mid-October and Prime Minister Arseny Yatseniuk has said that LNG could be an option.

He said U.S. firm Frontera Resources Corp. planned to build an LNG terminal on the Black Sea coast which would supply gas to Ukraine.


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