Shell hunting for R-LNG buyers

Vol 13, PW 24 (20 May 10) News in Brief

Shell is trying to offload the remainder of a 'dirty' LNG cargo imported to Hazira by junior partner Total.

PETROWATCH learns Reliance, which has taken about 60% of the 163,018-cubic metre cargo, was given a special ex-terminal R-LNG price of just $5.3/mmbtu. But other customers like state-owned NTPC, GAIL and BG subsidiary Gujarat Gas have not been so lucky and are being offered the same R-LNG at $6/mmbtu ex-terminal.

“This price of $6/mmbtu is perhaps the highest quoted for a spot cargo in 2010,” says a source. Reliance, we hear, was offered this special price of $5.3/mmbtu because it is Shell's single largest committed customer and also because of a short-term supply contract the two companies signed in the third quarter of 2009.

On April 27, Yemen LNG-chartered tanker Maersk Marib berthed at Hazira carrying 163,018-cubic metres of ‘dirty’ LNG drawn from the commissioning of Yemen LNG’s second ‘train’ at Balhaf in Yemen on April 2.