Only two spot LNG cargoes in November

Vol 16, PW 9 (15 Nov 12) Midstream & Downstream

After a storm of LNG imports in October things slowed down to a gentle November trickle at Dahej and Hazira.

Only two spot LNG cargoes came into India in the last two weeks, imported by Reliance and GAIL. Reliance landed a massive 205,967-cubic metre Q-Flex cargo on November 5 at Hazira, sourced through Total from Qatar Gas at $11.50/mmbtu.

Reliance’s 14th Q-Flex import of the year came in aboard 210,100-cubic metre capacity LNG carrier Al Safliya, flying the Bahamas flag. Owned and operated by Hamburg-based Pronav Ship Management, Safliya was built by Daewoo in November 2007 for $215m.

This was her second trip to India, the first being back in December 2010. Safliya generally ferries LNG from Ras Laffan in Qatar to the 15.6m t/y South Hook LNG terminal in the UK.

Safliya was loaded with the Reliance cargo at Ras Laffan on October 30 before leaving for Hazira on October 31 in the evening. At Dahej, GAIL landed its 11th spot cargo of the year on November 2.

GAIL’s 136,369-cubic metre ‘Spanish reload’ cargo was imported from the Enagas-operated Cartagena terminal in southeast Spain. This is the third Spanish cargo GAIL has sourced this year, as Spain continues to reel under a severe economic downturn, drastically hitting its demand for LNG.

GAIL paid between $11 to 11.30/mmbtu for the cargo. It was sourced by GAIL Singapore through Singapore-based energy trader Vitol from financial services giant Citigroup’s LNG trading division.

Citigroup in turn secured the cargo from Spanish utility company Iberdrola Generacion, which bought it from Enagas. “I am sure Citigroup earned well on this deal,” comments an observer.

GAIL landed two Spanish cargoes in July.

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