* Cargo deferrals prompt sell tenders
* Some deals done close to $2/mmBtu
* Some buyers seeks cargoes amid low prices
By Ekaterina Kravtsova
LONDON, April 17 (Reuters) - Asian spot prices for liquefied
natural gas (LNG) sank this week as the coronavirus pandemic
further dampened demand, prompting buyers to push back cargo
deliveries.
The average LNG price for June delivery into northeast Asia
<LNG-AS> was estimated at around $2.30 per million British
thermal units (mmBtu) on Friday, $0.20 per mmBtu lower than the
estimate last week.
The current price is almost half that for June a year ago,
Reuters data showed.
LNG and gas stocks had already been high all over the world,
a trader said. "Coronavirus has made the bad much worse. The
market is down due to low offtake by usual buyers," he added.
Several buyers around the world are trying to defer cargo
deliveries, industry sources said, which has led to several
floating cargoes and prompted some sellers to offer unwanted
volumes in tenders.
"That's why there are so many sell tenders on the market,"
the LNG trader said.
In a tender this week, Australia's Ichthys LNG plant sold a
cargo for loading in early May below $2/mmBtu on a free-on-board
(FOB) basis, sources said.
Brunei's LNG export plant sold an early June cargo at
$2.30/mmBtu on a FOB basis and also separately sold a cargo on a
delivered ex-ship (DES) basis for May 8-9 at around $2.10 per
mmBtu.
There was an offer from Indonesia's Tangguh LNG plant this
week for five cargoes for the May to July period.
Indonesian exporter Pertamina also offered two June cargoes.
In an unusual move, Royal Dutch Shell issued a
five-year strip tender offering four cargoes a year from 2021
onwards with an option to extend for another five years.
On the S&P Global Platts Market on Close window on Friday,
commodity trader Gunvor bought an early-June cargo from
Vitol at $2.05/mmBtu, but other bids and offers in
the window were higher.
SOME BUYERS SEEK CARGOES
There were also some buyers on the market looking to
purchase volumes as the LNG prices are at historical lows.
Turkish state energy company Botas was seeking seven cargoes
for delivery over May to June.
Kuwait Petroleum Corp (KPC) was looking to buy a cargo for
delivery in May.
German energy company EnBW was seeking four
cargoes for delivery in northwest Europe in the third quarter of
this year.
In China, Shenzhen Energy issued a tender for a June cargo.
A trader said there were signs of "going back to normal" in
China, adding that some demand might return in India after the
lockdown in the country was eased in some areas next week.
But he added that, so far, some Indian's buyers were still
trying to defer cargoes.
Japanese buyers might also try to defer cargoes, three
sources said, but this could not be immediately confirmed.
(Reporting by Ekaterina Kravtsova; Additional reporting by
Jessica Jaganathan; Editing by Pravin Char)
