GSPC buys RasGas spot cargo at $7.13/mmbtu

Vol 18, PW 24 (30 Jul 15) Midstream & Downstream

GSPC is winning cheap deals for spot LNG cargoes from RasGas but this might not last long as demand from Pakistan, Egypt and Jordan leads prices north for the second half of August.

GSPC wants a cargo for late August delivery after it bought a $23.66m cargo from RasGas for an attractive $7.13/mmbtu on July 20. Exclusive data with shows this is the best price paid by an Indian importer in 53 days.

Contrast this with a $26.41m Spanish reload sourced by GAIL from Huelva LNG through Gunvor on the same day for $7.45/mmbtu. On July 7, GSPC sourced a cargo from RasGas for as low as $7.05/mmbtu - again much lower than $7.68/mmbtu GAIL paid for a $25.30m cargo from Equatorial Guinea on July 17.

"When an intermediary is involved," explains GAIL, "a margin of $0.15-0.20/mmbtu is paid." An analyst adds that even though the overall market trend is bearish, the second half of July saw a spike of $0.20/mmbtu to reflect increased Pakistani, Egyptian and Jordanian demand. This month (July) Pakistan tendered for eight cargoes: two each in August, September and October and one each in November and December.

On July 23, Jordan National Electric Power Company tendered for 20 cargoes a year for four years beginning 2016 plus two spot deliveries this September. Also in July, Egypt floated tenders for 45 cargoes to be delivered in 2015-16.