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GLOBAL LNG-Asian prices slip as cargoes flood; North Asian demand slows

Fri, 21st Jun 2019 03:45

* Cargo imports into North Asia slip by more than 10%

* Offers from Australia, Africa and Mideast flood

* Cameron LNG loadings delayed

By Jessica Jaganathan

SINGAPORE, June 21 (Reuters) - Asian spot prices forliquefied natural gas (LNG) slipped this week on the back of asurplus of cargoes globally while imports from North Asiaappeared to be slowing down this month, industry sources said.

Spot prices for August delivery to Northeast Asia <LNG-AS>are estimated to be about $4.60 per million British thermalunits (mmBtu), down about 10 to 30 cents from last week, thesources said.

Prices for July delivery are estimated at about $4.40 permmBtu, stable from the previous week, they added.

A flurry of sell tenders flooded the global market whiledemand remained stable, industry sources said.

"Demand is actually quite alright, but it's the supplythat's depressing prices," a Singapore-based LNG trader said.

Exxon Mobil Corp's Papua New Guinea LNG exportplant, Australia's Ichthys plant, Nigeria LNG, Angola LNG plantand Abu Dhabi National Oil Co (ADNOC) offered cargoes for Julyloading or delivery, industry sources said.

Supply was also coming in for August with Oman LNG offeringthree cargoes, sources added.

Kuwait Foreign Petroleum Exploration Co (KUFPEC) may havesold a cargo for loading from Australia's Wheatstone plantbetween July 30 and Aug. 3 at $4.20 per mmBtu, industry sourcessaid, though this could not immediately be confirmed.

In Singapore, Gunvor sold a cargo for loading over Aug. 9 to13 to BP at $4.80 per mmBtu, they added.

The surplus of cargoes come as imports of the super-chilledfuel into Japan, South Korea, Taiwan and China look set to dipby more than 10% in June from the previous month, according toshiptracking data from Refinitiv.

The LNG tanker 'Seri Camar' has been floating in Malaysianwaters after loading the ship from Sabah oil and gas terminal inearly June, data from Refinitiv and data intelligence firm Kplershowed.

The tanker 'Valencia Knutsen', which is carrying the firstLNG export cargo from Royal Dutch Shell's Prelude floating LNG,is currently anchored in South Korea with destination stated asGeoje, Refinitiv data showed on Friday.

On the demand side, Indian Oil Corp may have bought a cargofor delivery on Aug. 22 at $4.50 per mmBtu, industry sourcessaid, though this could not immediately be confirmed.

India's Gujarat State Petroleum Corp (GSPC) is seeking twocargoes for delivery in August, sources said.

Providing some support, LNG loadings from Sempra Energy's$10 billion Cameron export terminal in Louisiana havebeen delayed after the first cargo from the project was exportedlast month to start up operations.

At least two commissioning cargoes, one for France's Totaland another for Spain's Repsol, were delayed,according to industry sources and shiptracking data.(Reporting by Jessica Jaganathan; editing by Gopakumar Warrier)

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