Arcelor-Nippon want 27 LNG cargoes

Vol 23, PW 18 (16 Jul 20) News in Brief

ArcelorMittal and partner Japanese steel-maker Nippon Steel are scouting for LNG for their 6.8m t/y steel mill at Hazira.

On July 7, the JV closed a tender to source 27 cargoes over three years from January 2021 until December 2023. "They received a good response and are evaluating the bids," reports a source.

Still unclear, is whether the JV is carrying out a simple price discovery exercise or if it will award the tender. Arcelor-Nippon sources around two cargoes a month for its steel plant at Hazira, acquired after the Supreme Court on November 15 (2019) accepted ArcelorMittal's offer to pay Rs42,000cr ($5.9bn) to the financial creditors of bankrupt Essar Steel.

On June 10, the JV sourced a Shell cargo from Atlantic LNG and on June 18 another load from ADGAS - both from Shell at $5.97/mmbtu. All 12 shipments from January 1 and June 30 (2020) were from Shell, Posco or Gunvor.

Separately, IndianOil is landing two US cargoes at Ennore under its 20-year deal with Diamond Gas. Panama-flagged Trinity Glory with 152,627 cubic metre capacity reaches Ennore on Monday (July 20) after from Cameron LNG while Liberia-flagged Neo Energy with an ability to hold 147,838 cubic metres berths on July 24.