| MILAN, Sept 2
MILAN, Sept 2 Asian liquefied natural gas (LNG)
prices fell in a slow week as traders awaited the outcome of two
tenders and Argentina turned away shipments due to mild weather
A major tender expected from Egyptian Natural Gas Holding
(EGAS) to buy 120 cargoes for 2017, which sources said could be
launched this weekend, was the market focus.
Bids under the Brent-priced tender will be due by October
and awards are to be finalised by the end of November at the
latest, one trading source said.
"They are trying to extend credit terms to 120 days," he
added. In December EGAS extended payment terms to 90 days from
the previous 15 days due to a foreign currency crisis.
Asian spot prices for October delivery traded at $5.30 per
million British thermal units (mmBtu), 20 cents below last
week's levels, trading sources said.
Gail India is set to award a purchase tender for one October
cargo on Friday, while Exxon Mobil's Papua New Guinea LNG export
plant is offering a cargo loading in late September.
Several cargoes changed hands in tenders.
Indian Oil Corp bought two for October, and Conoco Phillip's
Darwin project in Australia sold one each to Trafigura and
Gunvor on a free-on-board basis, at $5.10 per mmBtu, traders
BP sold a October cargo to Turkey's EGE Gaz for around $5.20
per mmBtu, trade sources said.
On supply, Indonesian liquefaction plants at Bontang and
Donggi Senoro offered additional shipments to their long-term
partners and possibly spot buyers.
The giant Gorgon facility in Australia is also set to offer
more cargoes though spot tenders. The second production line at
Gorgon is due to start up in the fourth-quarter and the third is
to begin in the second-quarter 2017, a Chevron spokesman said.
Angola LNG, shut for maintenance since July, may resume
output before late September as two vessels, the Lobito and
Soyo, are due to arrive at the plant by mid month, shipping data
Nigeria LNG shook off production disruptions caused by a
pipeline leak last month with vessels now leaving the plant
"The September loading programme shows no disruption to
supply," one source said.
In mid-August the plant canceled cargoes earmarked for
project stakeholders, including 4-5 cargoes for Shell, 1 for
Enel and 2 for Total, trade sources said.
Algeria's Sonatrach was still heard offering cargoes for
October loading, traders said.
Argentina's state-run buyer Enarsa said it had canceled one
shipment and delayed three cargoes until next year because of
one of the warmest Augusts in a decade.
(Editing by William Hardy)