Asia LNG Tender Roundup: Spot Demand Depressed by High Prices

North Asian physical spot LNG physical prices are around the $18/MMBtu mark, according to Bloomberg, as geopolitical tensions from the Middle East add a risk premium. This is despite a flurry of offers in the region for December deliveries.

• Winter spot demand remains weak as the current high prices drive away price sensitive importers in the region. December buying for some of APAC’s largest end users is also drawing to a close
• Several producers have offered recent tenders for December deliveries into Asia. This includes Australia’s Gorgon export project and the UAE’s Adnoc.
• Sakhalin have also offered two cargoes for December, while Kuwait’s KUFPEC Australia issued a tender for a FOB loading cargo from Australia’s Wheatstone Dec. 20-23.
• Meanwhile, Petronas are offering a sell tender for a January cargo into Asia.
• On the demand side, Japan’s Tohoku Electric bought a cargo via tender for December delivery in the mid $18/MMBtu, Bloomberg said.
• Additionally in December, South Korea’s Komipo has launched a tender for December delivery cargo, while Bangladesh is also looking to buy a December cargo.
• Vitol will supply Bangladesh a November delivery cargo at $17.55/MMBtu after winning an earlier tender.
• In longer-term news, Singapore aims to bring a second LNG terminal online by the end of the decade, according to Bloomberg. The terminal will be offshore on an FSRU operated by Singapore LNG and will have a capacity of up to 5m mtpa.
• JKM Nov 23 down -1.6% at 17.73$/mmbtu
• JKM-TTF Nov 23 down -0.1$/mmbtu at 2.19$/mmbtu