08-08-2009, 04:47 PM
Old Article but is a Guide to Pakistan having âAgreedâ to Iranâs Natural Gas at a Delivered Price Equivalent of 80% the âSpotâ Oil Price.
Thus Pakistan would get Natural Gas from Iran â at todayâs Price Equivalent â at USD 70 X 7 X 0.8 / 40 i.e. USD 9.8 per MMBTU!
<b>GLOBAL LNG-Asian spot prices steady, shrug off Britain drop</b>
PERTH, July 17 (Reuters) - Prices of spot liquefied natural gas (LNG) were the highest in Asia this week, as gas prices in Britain and the United States slumped amid buoyant supplies but tepid demand, traders said on Friday.
Traders said offering prices for spot LNG in Asia were flat at around $4 per million British thermal units (mmBtu) on an ex-ship basis, as gas prices in Britain languished at around $3.31 per mmBtu and U.S. gas prices on the benchmark Henry Hub stood at $3.21.
"Prices in Asia are quite resilient because there's actually good demand from India. Chinese buyers have also been in and out of the market," said a trader.
India's Petronet LNG (PLNG.BO: Quote, Profile, Research) has bought a spot cargo of LNG from Qatar for July delivery, after having bought a spot cargo in June, traders said earlier this week. [ID:nSP489125]
Traders said the Gas Authority of India Ltd (GAIL), GSPC Ltd and National Thermal Power Corporation were also scouting for spot cargoes as a delay in the monsoon season had forced almost all the country's hydropower plants to operate at less than 40 percent capacity.
But despite having a need for extra gas supplies, Indian buyers are reluctant to pay Asian spot prices and have demanded that Asian sellers peg the prices to those on the British National Balancing Point (NBP).
"And it's logical for them to do so, considering they can easily take cargoes from either Europe or Asia given their geographical location," said a second trader.
Analysts and traders said LNG prices could weaken in the coming months amid a deluge of new supplies.
Qatar's new train 5 gas unit is due to start processing gas very shortly as part of the commissioning of the LNG facility, Qatargas said on Wednesday, while Russia's Sakhalin-2's LNG train is also expected to return onstream later this month. [ID:nLF439479]
In Britain, the newly built Dragon LNG terminal in South Wales is set to receive a second cargo this month after the first cargo arrived at the facility on Tuesday, according to Waterborne Energy analysts. [ID:nN15351900]
The Provalys LNG tanker, owned by GDF Suez (GSZ.PA: Quote, Profile, Research), is also heading to Britain's Isle of Grain terminal from Norway, according to AISLive ship-tracking data on Reuters. (Reporting by Fayen Wong; Editing by Clarence Fernandez)
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