Reliance to buy 50 spot LNG cargoes

Vol 16, PW 12 (10 Jan 13) Midstream & Downstream

India’s largest spot LNG importer Reliance is poised to raise the bar in 2013 by bringing in even more LNG cargoes than in 2012.

Reliance plans to land at least 50 spot LNG cargoes at Hazira this year to meet growing gas demand at its 1.24m b/d twin Jamnagar refinery complex and its Vadodara, Dahej and Hazira petrochemical complexes in Gujarat. Reliance began the year with a bang by importing a 211,834-cubic metre cargo on January 1 at Hazira, which came in aboard Q-Flex carrier Al Hamla.

On its first trip to India, the 216,200-cubic metre capacity carrier was loaded at Ras Laffan in Qatar on December 27. Reliance sourced the cargo from Paris-headquartered Total Gas & Power, which in turn sourced it from the Qatar Gas-II project where it has 16.7% at Train 5.

Flying the Marshall Islands flag, Samsung-built Al Hamla is owned and operated by New York-based Overseas Shipholding Group (OSG). Reliance paid $14.40/mmbtu for the cargo.

At Dahej, Petronet-LNG brought in two spot cargoes in the second half of December, landing a 135,330.930-cubic metre spot cargo on December 22 aboard Castillo De Villalba, loaded at Bonny Island in Nigeria on November 27. Petronet-LNG sourced the cargo through Spain’s Gas Natural from Nigeria LNG at $14.10/mmbtu and also brought in a 145,317.544 cubic metre cargo on December 13 from Bethioua in Algeria aboard Grace Acacia on its first trip to India.

Flying the Bahamas flag, the $170m carrier has a 150,000 cubic-metre capacity and is operated by NYK LNG Ship Management. Petronet-LNG bought the spot at $13.90/mmbtu through GDF Suez from Algeria’s Sonatrach.