Shell importing spot LNG at less than $11/mmbtu

Vol 17, PW 26 (14 Aug 14) Midstream & Downstream

Shell imported a spot LNG cargo carrying 142,642 cubic metres at the Hazira terminal late Wednesday (August 13) evening at a Delivered ex-Ship (DES) price of between $10.60 and $10.90/mmbtu as global prices continue their inexorable slide south.

This is the first time a spot LNG cargo has been imported to India at less than $11/mmbtu since October 1, 2012 when Reliance landed a cargo at Hazira at $10.60/mmbtu DES. Shell is sourcing this cargo through trading affiliate SITME from AdGas.

Exclusive LNG import data collected by PETROWATCH reveals a sharp drop in the DES price of cargoes landing on India’s west coast in the seven months from February to August this year. Take Reliance, which on February 27 landed a Nigerian spot cargo priced between $17.30 and $18.20/mmbtu DES.

Fast-forward six months to August 8 and Reliance landed a cargo from Qatar at just $12.20 to $12.50/mmbtu - around $5 cheaper. Likewise GAIL imported a spot cargo from RasGas on March 12 at between $17.45 and $17.95/mmbtu but its most recent cargo on August 4 brought from Nigeria through GDF and BG cost just $12.65 to $12.95/mmbtu.

GSPC paid $17.60 to $18.10/mmbtu for a Nigerian spot cargo on February 18 but its last cargo on July 7 was delivered at $12.75 to $13.10/mmbtu. Petronet-LNG paid $17.70 to $18.20/mmbtu for a spot cargo on February 26 but paid a low $13.40 to $13.90/mmbtu for a Petronas MLNG cargo sourced through Koch on June 21.

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