Qatargas supplies Mundra commissioning cargo

Vol 23, PW 5 (16 Jan 20) Midstream & Downstream

Fifteen months after it was inaugurated the Mundra LNG terminal is at long last about to be commissioned.

This report learns GSPC LNG will receive the terminal's commissioning cargo on January 22 sourced directly from Qatargas (with no intermediary) and priced at an attractive $6/mmbtu. "Mundra will receive a standard size cargo of between 150-160,000 cubic metres," says a source.

"Terminal commissioning cargoes are generally more expensive than conventional LNG cargoes." This is explained by the commissioning LNG tanker's extended stay at the new regassification terminal jetty compared to the normal 24-36 hours discharge time needed by a cargo to transfer LNG from the tanker to onland storage tanks.

"An extended stay is because the discharge rate is very slow and the (commissioning) tanker which has berthed at the jetty might wait five, six days or even 15 days," adds our source. "All these details are listed in the contract."

A 15-day wait for a tanker would typically mean an extra $100,000/day or $1.5m for 15 days. "Waiting charges add between $0.50 to $1/mmbtu to the cargo price," we hear.

With January LNG deliveries priced at between $5.20-$5.40, GSPC LNG was expecting to pay around $6.50/mmbtu. "But GSPC secured the cargo at less than $6/mmbtu," we hear.

"This is a very good price." GSPC paid $0.05/mmbtu more for a normal cargo for January delivery.