This worked out to November bids of $9.25/MMBtu from Kogas as November futures at the NBP gas hub were at 46.80 pence/therm ($7.408/MMBtu) at 08:30 GMT. Friday, losing 0.20 p/th compared to the same time Thursday.
Another seller said November was all done and his cargoes were all sold. The UAE's Adgas offered one end-October loading cargo at a target price above $8.20/MMBtu FOB, a source close to the matter said, adding that the cargo would be discharging mid-November in the Far East.
"Adding $1/MMBtu to the FOB price will give the delivered price of the cargo to Asia," he said. That would imply a re-offer price of around $9.30/MMBtu in Asia by the successful bidder for the Adgas cargo. "Adgas is likely to ask for at least $8.50/MMBtu FOB for the end-October loading cargo it's offering," a trader said, adding: "Anyone who gets the cargo would have to re-offer it in Asia at at least $9.40/MMBtu after adding in about 90 cents for freight."
The shipment was supposed to be a partial cargo but Adgas had changed it to a full cargo to justify a higher selling price, he added. H1 December was at $9.65/MMBtu Friday, up from $9.50/MMBtu at the start of the week, and a steeper contango to H1 November at $0.45/month as demand for cargoes picked up in preparation for the winter season.
"Sellers offering late November cargoes at $9.30/MMBtu earlier this week have withdrawn their offers," a European source said, adding that the sellers were holding out for December with offers of $9.80-10/MMBtu. "I would add a contango of $0.50-0.60/MMBtu to my November offers of $9.20-9.30/MMBtu," a seller said, with his December offers working out to an equivalent of $9.70-9.90/MMBtu. A north Asian buyer said, "If the temperature [in north Asia] is colder than expected and electricity demand picks up, then I will have to buy [spot LNG]."
"[China's CNOOC] has called a tender to buy two cargoes, with one each delivered in early and late December respectively," a source said, adding that the tender would close October 8. He added that Japan's Chubu Electric "may already be in talks with suppliers for December cargoes" in light of the indefinite delay in the restart of a reactor at its earthquake-hit Hamaoka nuclear power plant. Platts LNG FOB Middle East assessment was at $8.35/MMBtu Friday, up from $8.10/MMBtu October 4. Platts Asia Pacific Day Rate for LNG ship charters was stable across the week at $45,000/day.
China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html
