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GLOBAL LNG-Prices poised to firm as new buy tender and outages bite

Fri, 08th Jul 2016 17:00

* Output from Angola and Gorgon uncertain

* New demand from Argentina, India and possibly Egypt

MILAN, July 8 (Reuters) - Asian prices for liquefied naturalgas (LNG) were set to rise next week on strong prompt demandfrom Argentina and India as well as potentially lengthier supplydisruptions in Australia and Angola.

However, this week Asian spot LNG prices tradedlower at $5.25 per million British thermal units (mmBtu), down25 cents since last week.

More supply in Asia helped lower prices following a streakof gains recently, but uncertainty over when Chevron Corp's newly-built Gorgon LNG export plant will resume cloudedoutlooks.

Last week Chevron suspended production at Gorgon due to agas leak and said operations would resume a week later, althoughit is not clear if that is still the case.

A shipping schedule released before the leak showed Gorgonwould export on July 9 using the Asia Excellence tanker, whichis anchored nearby, shipping data shows.

Supply from the Chevron-led Angola project also seems tohave slowed compared with an initial burst of cargoes after theplant restarted in June following a two-year rebuild.

A tender for a fourth Angolan cargo was cancelled last week,and has not been relaunched yet, prompting speculation aboutoperational issues.

In terms of demand, Argentina launched a major buy tenderfor 10 LNG cargoes, three of which are for the Bahia Blancaterminal with the remainder for the river terminal at Escobar.

Nine of the cargoes are due for September delivery and oneshipment is for late August, industry sources said.

A tender Egypt is expected to offer for additional supplymay help push prices higher if it materialises next week, theysaid.

Indian buyers were also heard to be in the market seekingsupply.

Shell reported a small fire at the constructionsite in South Korea for its huge floating Prelude liquefiednatural gas (LNG) project, with work resuming immediately and aninvestigation underway.

France's new Dunkirk LNG import terminal received itsinaugural shipment on Friday from the Madrid Spirit tanker,majority owner EDF said in a statement.

(Reporting by Oleg Vukmanovic; Editing by Ruth Pitchford)

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