ANKARA: State-run LNG importer BOTAS is seeking spot cargoes for April delivery, which is atypical for this buyer, one trader active in Turkey said on 8 March. At least one independent buyer is also considering buying spot LNG for delivery in the late summer, a source close to the Turkish company told ICIS last week.
The company is in process of negotiating access to the Aliaga LNG terminal with a view of importing one cargo. The buyer is currently deciding whether to purchase the cargo independently or rely on the terminal’s operator EgeGaz as its procurement agent. Turkey’s spot LNG prices for April are currently around $0.50/MMBtu premium to UK’s NBP, while May cargoes are priced at a $0.20-0.40/MMBtu premium.
While it could not be confirmed whether BOTAS is using NBP as its prevailing benchmark for buying LNG, sellers view the British gas hub as the closest proxy for opportunity cost, given the origin of spot cargoes delivered to Turkey so far. BOTAS typically purchases spot LNG on either a fixed-price basis or at an indexation to the 90-day average Brent crude oil benchmark.
