Mitsui imports spot LNG cargo after 5-year gap

Vol 19, PW 4 (22 Oct 15) Midstream & Downstream
     

After a five-year break, during which it has ostensibly been analysing the market, Japanese trader Mitsui has supplied a spot LNG cargo to India.

Mitsui and Geneva-based partner Gunvor delivered a 154,913 cubic metre cargo to GAIL on October 13 at Dahej aboard LNG tanker Stena Crystal Sky sourced from Australia’s 4.3m t/y Pluto LNG project operated by Woodside. Mitsui will supply another spot to GAIL in the first half of November at Dahej.

The Japanese company last supplied a cargo to GSPC in June 2009 from Australia’s North West Shelf. Why the long break? “Mitsui is interested in the Indian market,” says an industry source.

“But as a Japanese company it is cautious.” Mitsui might also procure spot cargoes for GSPC and IndianOil, with which it signed a Master Sales Purchase Agreement (MSPA) earlier this year and is exploring opportunities to directly supply customers like fertiliser producer IFFCO which wants 1m cm/d R-LNG for 30 years at its urea factory in Andhra Pradesh.

Further, Mitsui is interested in other Indian opportunities like a re-issued GAIL tender to hire nine tankers, where it is likely to bid aggressively by December 14. GAIL meanwhile is planning two more spot LNG cargoes – in November and December at Dahej.

IOC is also bringing in two cargoes in November and December. “One is from BG,” we hear.

“IOC may bring another (third) cargo in December.”

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