LONDON/SINGAPORE, Sept 22 (Reuters) - Asian spot LNG prices rose this week, buoyed by the outcome of a two-cargo sale tender from Russia’s Sakhalin II export plant as well as a purchase by Japan and demand from India.
Spot prices LNG-AS for November delivery rose about 15 cents to $7.60 per million British thermal units (mmBtu).
Russia’s Gazprom sold one of two mid-November loading cargos from its Sakhalin II plant for as much as $7.80 per mmBtu, traders said, but prices have retreated since, with some cautious northeast Asian buyers waiting out the rally.
Still, November shows a relatively strong contango, with the back-end of the month trading above the front, traders said.
A sale tender from Indonesia’s Donggi Senoro facility for early November delivery fetched $7.50 per mmBtu. The buyer was a Japanese utility, sources said.
Indian buyers including Gail and GSPC sought supply.
Kuwait closed a tender seeking a November shipment.
At France’s Montoir terminal, a cargo held in storage will be reloaded onto the Cool Runner tanker for onward export to state-run Petrobras in Brazil, a market source said.
State-run Pakistan LNG Ltd on Monday launched a tender seeking four cargoes for January delivery, according to documents posted on the company’s website.
The delivery dates are Jan. 11-12, 16-17, 21-22 and 26-27, according to the tender notice.
Bids must be submitted by Oct. 18 and are valid until Nov. 10, according to a separate bidding document.
A potential bullish factor for Asian winter markets are potential delays to production from Chevron’s new Wheatstone LNG project.
The Asia Venture LNG tanker was initially headed for Wheatstone with a due date of Sept. 24 but on Thursday was diverted toward the port of Dampier, indicating fresh export delays.
Wheatstone was initially scheduled to export its first cargo in early September.
“Start-up of the Wheatstone project is progressing, with Train 1 close to first LNG production,” a Chevron spokesman said. (Reporting by Oleg Vukmanovic and Mark Tay; Editing by Jon Boyle)
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