TOKYO: Traders anticipate more buying interest for liquefied natural gas (LNG) from importers including Japan and Argentina next week after Asian spot prices eased due to weak demand. LNG for June delivery in Asia traded at $4.55/MMBtu, down from $4.75 the previous week. July prices were in line with June.
Traders highlighted Polish Oil and Gas Co.’s (PGNiG) tender to buy five cargoes as a bright spot in an otherwise slow week. Argentina’s YPF was expected to tender to buy soon having not awarded any cargoes in a nine cargo tender last month.
Korea Gas Corp. (KOGAS) has an active tender launched last month to buy six cargoes. “Many people are waiting for Argentina to re-tender, maybe it will be next week,” a trader said. Japanese end-users were also expected to be in the market next week for July deliveries, traders said. Earlier this week, Japan’s trade ministry said it aims to become an international trading hub for LNG by the early 2020s, opening access to receiving terminals and beefing up large-scale storage facilities, to make active trading possible.
Also on a longer-term basis, news that India plans to shift to a gas-based economy by boosting domestic production and buying LNG as it seeks to curb its greenhouse emissions, was supportive for global demand. On the supply outlook, Chevron’s Gorgon LNG project, which was forced to stop production in April due to a mechanical problem in a cooling unit, is set to restart later this month.
