GSPC wants Torrent price for LNG strip cargoes

After a break of more than a year GSPC has returned to the market and is scouting for a short to medium-term LNG 'strip' deal of between 12 to 14 cargoes.

Spurred on by rising spot LNG prices, GSPC invited offers on September 15 for two standard sized cargoes needed in the last quarter of calendar year 2017 (October to December); one in the second half of October and another in mid-December. Two more cargoes are wanted in the first quarter (January to March) of calendar year 2018 and finally: ten cargoes for delivery every 70 days from April 2018 to December 2019.

"Normally buyers try to lock-in prices with a (24 to 36-month) 'strip' deal (deliveries at regular intervals) when spot prices start to firm up," says a source. "Also when they have enough long-term supplies, which GSPC has." In the second half of August and this month (September) spot LNG deliveries to India's west coast have risen by $0.15 to $0.30/mmbtu, prompting GSPC to predict an upward swing and eagerness to lock-in prices.

September 25 is the last date for offers, valid till September 29. GSPC is believed to be looking for deals of 10.5% to 13.5% slope to Brent, similar to Torrent Power's 26-cargo deal awarded last month (August) to BP, Gazprom, Shell and Vitol.

"That's the best price around," we hear.