Global LNG Markets 2015

GLM 11.35 | 10 September 2015 | Published by ICIS | www.icis.
com/energy | 20 Pages
Heren Global
LNG Markets
Energy Prices News Analysis
Market Report
1
Low prices have helped entice KOGAS back

to the spot market but excess supply still
resonates across the Asia Pacific basin. Indias
GAIL awarded a 2016 buy tender as Nigeria
offered a fresh cargo out
2
News
2
Indian imports in 22% monthly fall

in August
9
Eneco extends Gate capacity; focuses on
small-scale LNG
11
Focus
16
GLM Comment
19
GNLS negotiating withdrawal

from Uruguays import project
The consortium formed by European LNG
supplier ENGIE and Japans Marubeni to oversee the development of Uruguays first LNG
import terminal is involved in final discussions
with the Uruguay government to pull out of
the project.
A formal withdrawal is expected to be
reached between the consortium GNL del
Sur (GNLS) and the government before the
end of September, said a spokesperson for
Gas Sayago, the company overseeing construction of the terminal on behalf of the
Uruguayan state.
This news has plunged the GNL Del Plata
project in uncertainty, just a year before operations at the regasification terminal were
set to begin. The Uruguayan government is
understood to remain committed to the project, however, a decision over the next steps
has yet to be taken.
State oil company ANCAP and utility UTE,
the main shareholders in Gas Sayago and the
LNG projects sole offtakers, are understood
to have already begun evaluating a possible
new tender for the provision of regasification
infrastructure.
The companies may also consider a separate option involving the formation Page 9
Prices & Data

3
4
5
6
7
13
18
Shipping costs and netback values

Charter rates and bunker prices
Global LNG tenders
Trades: ex-ship and free on board
Stocks
Malaysia as an importer and exporter
SPOT des prices
$/MMBtu
Week-onWeek-onweek diff Nov '15 week diff
Location
Oct '15
EAX
7.500
-0.219
7.425
-0.244
Japan
7.500
-0.225
7.425
-0.250
India
7.350
-0.150
7.250
-0.300
Spain
6.536
0.067
6.601
0.112
Britain
6.080
-0.031
6.415
-0.077
Argentina
7.350
-0.300
7.490
-0.280
FORWARD GAS MARKETS:

UK NBP (ICIS)
$/MMBtu
09 Sep
Change 09 Sep Change
15
2 Sep 15 on week
14
on year
Oct '15
6.333
6.365 -0.032 7.982 -1.648
Nov '15 6.682
6.762 -0.080 9.374 -2.692
Dec '15 6.881
6.941 -0.060 9.922 -3.041
Singapores Pavilion Energy

sees future in small-scale LNG
Jan '16
6.932
7.024 -0.092 10.111 -3.179
Feb '16
6.960
7.054 -0.094 10.147 -3.187
Mar '16 6.784
6.850 -0.066 9.844 -3.060
Singapores state-backed Pavilion Energy

highlighted the strong potential for smallscale LNG in southeast Asia at the 7th LNG
Asia Pacific Summit on 9 September.
Pavilion Energy plans to develop smallscale supply solutions for the region and is in
talks with several partners in markets such as
Indonesia and the Philippines, according to
Seah Moon Ming, the group CEO.
The small-scale LNG market is gaining
momentum in southeast Asia because it is
considered a cost-effective solution for transporting natural gas to users not connected to
pipeline grids or located in remote locations.
It makes sense to use small 10,000cbm
vessels carrying 0.05-0.5mtpa of LNG to perform multi-location deliveries, he said at the
CWC conference in Singapore.
Whether transported via land or sea,
small-scale LNG solutions can also bring an
initial capital expenditure investment down
by 10-25 times as compared to conventional
methods, he said.
Aside from emerging and prospective
small-scale LNG markets in Indonesia and the
Philippines, Pavilion Energy also plans to sell
LNG through truck-loading services to downstream users with no access to pipeline gas
FORWARD GAS MARKETS:

Us henry hub (NYMEX)
in Singapore. A supplier involved in the discussions with Pavilion Energy confirmed with
ICIS that both companies see huge potential
for the LNG truck-delivery market.
However, it will be a tricky process because of Singapores strict safety regulations
on delivering inflammable products, the
source said.
Singapores downstream market is huge
because there are many power generators,
large petrochemical factories and manufacturers in Tuas and Jurong Island that do not
have access LNG, the source told ICIS.
According to Seah, Pavilion Energy currently supplies gas to more than 30% of
industrial users in the power generation, petrochemicals, biotechnology, pharmaceutical
and manufacturing industries.
Pavilion Energy is also working on an LNG
bunkering trial and license, as it foresees
Singapore becoming a strategic location for
LNG-fuelled vessels to refuel when they head
through the Straits of Malacca, Seah said.
Over the long term, Seah expects LNG
demand from southeast Asia to rise, when
traditional LNG exporters such as Malaysia and
Indonesia become net importers to meet rising
domestic consumption. xieli.lee@icis.com
$/MMBtu
09 Sep
Change 09 Sep Change
15
2 Sep 15 on week
14
on year
Oct '15
2.651
2.648
0.003
3.984 -1.333
Nov '15 2.736
2.720
0.016
4.035 -1.299
Dec '15
2.896
2.857
0.039
4.110 -1.214
Jan '16
3.007
2.969
0.038
4.173 -1.166
Feb '16
3.011
2.972
0.039
4.160 -1.149
Mar '16 2.978
2.939
0.039
4.094 -1.116
contract gas markets:

(ICIS)
$/MMBtu
NW Europe Oil Indexed
Japan
Import
October '15
10.288
9.542
November '15
10.299
9.888
December '15
10.309
9.125
January '16
10.273
8.462
February '16
10.346
8.247
March '16
10.332
8.231
ICIS accepts no liability for commercial decisions based on the content of this report. Unauthorised reproduction, onward transmission or copying of Global LNG Markets in either its electronic or hard copy format is illegal.
Should you require a licence or additional copies, please contact ICIS at energysales@icis.com.
GLM 11.35 | 10 September 2015 | www.icis.com/energy
Market Report
Back to
contents
OJO Images/rex features
KOGAS is back but LNG length persists

Low prices have helped entice KOGAS back to the spot market but
excess supply still resonates across the Asia Pacific basin. Indias GAIL
awarded a 2016 buy tender as Nigeria offered a fresh cargo out
October to
November spot
prices in Asia
are currently in
backwardation
The purchase of a spot free on board (FOB)

cargo from KOGAS did little to dampen the
widespread bearish sentiment in Asia Pacific.
Traders have been assessing the repercussions of Chinese state-owned buyers, CNOOC
and PetroChina, selling excess volumes from
September to November, while heavy rains
in Japan consolidated a gloomy East Asian
demand outlook.
Spot prices in the region are in backwardation with traders expecting deliveries to Japan
in the low-$7.00s/MMBtu before the end of
the year as new supply comes online from
Gladstone LNG (GLNG) and Australia Pacific
(APLNG).
A small delay in the start up of APLNG from
the first half of September to the first half of
October troubled few participants while GLNG
is still expected to export first LNG before endSeptember.
CNOOC has closed a two-cargo tender
from Gladstone on 8 September but a fivecargo tender from the same plant remains
open until 14 September.
The award of a single cargo from Indonesias Pertamina to KOGAS at the start of
the week caused some surprise, signalling
the return of KOGAS to the market. The
state-owned Korean buyer has been long for
much of this year but is now understood to be
seeking up to three winter cargoes. Its most
recent purchase is understood to have been
made in the low-$7.00s/MMBtu FOB from

Bontang - at a similar price to recent FOB
transactions in the Atlantic basin.
A range of recent buy and sell tenders
remain open or unawarded in the Atlantic
and Pacific. The most recently launched sell
tender came out on 7 September from Nigeria LNG for a late September FOB cargo.
Among the most recently awarded buy tenders, Indias GAIL has purchased 12 cargoes
for 2016 delivery.
The prospect of a sustained forward period of excess supply has prompted some traders to consider ways of using floor markets in
Europe such as the Dutch TTF and British NBP
to manage price and volume risk. The 2016
GAIL cargoes are said to have been agreed
at around 10% of the ICE Brent crude oil
benchmark plus a premium between $1.10$1.40/MMBtu.
Aside from India, markets further west
such as Pakistan, Jordan and Egypt all have
outstanding demand that stretches across
winter and beyond. Jordans NEPCO closed its
mid-term tender on 7 September, after the
deadline was initially extended for a week.
KOGAS buys prompt Bontang cargo

Indonesias state-owned company Pertamina
has awarded KOGAS a prompt cargo from
Bontang on 4-7 September.
KOGAS will lift the cargo in the sec-
Market Report
ond half of September, having said to have

won with a bid in the low-$7.00s/MMBtu
FOB. Pertamina issued the tender on 31 August following the shutdown of a gas-fired
fertiliser plant in Indonesia, according to
one market source. The tender closed on 3
September.
Separately, Pertamina is reportedly still
evaluating the bids submitted for its fourcargo tender that closed on 27 August.
The validity period for this tender is until 23
September and it will be awarded on a fixedpriced basis. It was issued on 24 August.
Elsewhere in Indonesia, a tender for single
cargo from Tangguh remains open until 11
September. The cargo would load between
25 October and 5 November.
Three cargoes from Tannguh are understood to have been sold in August for October
delivery. The buyers were said to be Japanese
trading house ITOCHU and UK-based BP in
the high $7.00s/MMBtu on a delivered (DES)
basis.
Pockets of Asian demand
Aside from
India... Pakistan,
Jordan, Egypt all
have outstanding
demand
While the KOGAS purchase was largely

unexpected, further small pockets of demand
are anticipated. Despite widespread bearish
sentiment in Japan, JX Nippon bought a
spot cargo for delivery in late October at
around $7.50/MMBtu in the week ending 4
September.
An accident last month at TEPCOs Futtsu
power plant which will likely keep 1.5GW of
gas-fired capacity offline for the remainder of
the year, as well as the restart of a nuclear
reactor at Kyushu Electrics Sendai power
plant, should prevent both those utilities from
entering the spot market, but smaller buyers
such as JX Nippon may still be tempted to
profit from low prices to top up inventories.
Although buying sentiment is subdued there
are still a few reported outstanding requirements for November and December in Japan.
In China, despite the length displayed by
state-owned PetroChina and CNOOC, two
independent buyers who both purchased one
cargo each earlier this year are keen to buy
more spot over the fourth quarter or early
2016.
Although China is well-supplied from
domestic pipeline gas and long-term LNG,
independent buyers say they can easily absorb extra spot but would seek prices below
$7.50/MMBtu. The greater barrier to trade,
however, is gaining third-party access to
LNG terminals. PetroChina is currently the
only operator that has allowed third parties
to receive LNG at its terminals. While there
is market talk that PetroChina might have
a delivery window available for October, independent buyers said internal policies and
complex approval process could scupper any
spot deal.
Indian subsidies to support demand

Aside from GAILs 12-cargo award which
came hot on the heels of a five-cargo award

for October, November and December at
the end of last month, fresh developments
in India may support further imports from
2015-2017.
The Indian government has issued two
tenders for providing the second phase of
subsidy support to gas-based power plants
that buy regasified LNG from state gas network operator GAIL.
The proposed subsidy would be provided
through the power system development fund
and is targeted at stranded-gas-based power
plants and gas power plants, which have
received limited domestic gas supplies from
April 2014 to January 2015. The Ministry of
Power has set a deadline of 11 September for
accepting technical bids and said letters of
award will be issued on 17 September.
The governments move may lead to an
increase in LNG imports within the next few
months, a GAIL official told ICIS. The regasifified LNG (RLNG) limit is set at 1.65 million
cubic metres(mcm)/day for gas-based power
plants and 13.35mcm/day for stranded-gasbased power plants, according to tender
documents.
The subsidy support to power plants
for purchasing cheaper regasified LNG will
include a customs duty waiver on imported
LNG and a waiver of service tax on regasification and transportation of the e-bid RLNG
and reduction in pipeline tariff charges by
GAIL.
GAIL shall reduce the pipeline tariff by
50% on e-bid RLNG, the tender document
stated.
GAIL has already purchased five fourth
quarter cargoes in August at around $7.50/
MMBtu, ICIS understands. Two would be due
to arrive in October, two more in November,
and the fifth and final part of the strip deal is
expected in December.
GAIL is reported to have awarded the
five-cargo tender to BG Group and the more
recent 12-cargo tender for 2016 delivery to
Spains Gas Natural Fenosa. The forward
price agreed for GAILs 2016 cargoes could
stand as a reference in ongoing tenders in
the Middle East.
Elsewhere in India, LNG buyer GSPC is
reported to be probing the market for a midOctober spot cargo. Delivery would likely
be expected at Dahej but GSPC also has a
monthly slot at the Hazira terminal. The ICIS
India DES October price was assessed at
$7.35/MMBtu at the close of 10 September.
Back to
contents
Nigerias prompt FOB tender

The launch of a spot cargo tender from
Nigeria has seen prospective bidders weigh
up chartering possibilities from the high
$20,000s/day to the low or mid-$30,000s/
day.
There are reported to be three cold vessels from separate shipowners that are being
offered, and more warm ships are Page 5
Spot Netback Indications
PRODUCING REGIONS TFDE NETBACKS
$/MMBtu
10
Back to
contents
8
6
4
2
0
Middle East
North Africa
West Africa
Isle of Grain
Far East
Huelva
Hazira
Trinidad
Bahia Blanca
Northeast Asia
Australia
Tokyo
$/MMBtu
TFDE SHIPPING COSTS FOR October 2015

North Africa
West Africa
Far East
Trinidad
Northeast Asia
Australia
Tokyo
Middle East
0.638
1.208
1.004
0.298
1.251
0.162
0.400
N Europe
1.448
Pyeong Taek
0.606
1.176
0.975
0.272
1.222
0.201
0.392
1.415
Guangdong
0.513
1.081
0.884
0.188
1.130
0.271
0.318
1.320
Yung An
0.536
1.097
0.894
0.193
1.149
0.239
0.322
1.343
Singapore
0.391
0.957
0.769
0.138
1.015
0.383
0.226
1.195
Map Ta Phut
0.454
1.021
0.830
0.166
1.076
0.378
0.283
1.259
Hazira
0.194
0.760
0.733
0.356
1.075
0.604
0.409
0.996
Jebel Ali
0.106
0.737
0.803
0.427
1.053
0.676
0.481
0.974
Mina Al Ahmadi
0.111
0.770
0.835
0.460
1.086
0.709
0.513
1.006
Aliaga
0.660
0.205
0.502
0.917
0.514
1.170
0.971
0.438
Revithoussa
0.661
0.193
0.490
0.919
0.502
1.172
0.973
0.426
Rovigo
0.721
0.209
0.506
0.979
0.518
1.233
1.033
0.442
Huelva
0.784
0.121
0.366
1.043
0.374
1.297
1.098
0.297
Sines
0.794
0.131
0.365
1.053
0.365
1.307
1.108
0.283
Rotterdam
0.889
0.223
0.455
1.150
0.431
1.405
1.205
0.198
Zeebrugge
0.884
0.218
0.450
1.144
0.425
1.399
1.200
0.201
Montoir
0.855
0.189
0.422
1.115
0.403
1.370
1.170
0.239
Isle of Grain
0.883
0.216
0.449
1.143
0.424
1.398
1.198
0.202
Sabine Pass
1.181
0.507
0.605
1.446
0.272
1.430
1.170
0.522
Quintero
1.056
0.771
0.654
0.927
0.655
0.860
0.828
0.932
Guanabara Bay
0.888
0.462
0.375
0.865
0.348
1.100
0.796
0.622
Bahia Blanca
0.928
0.581
0.483
0.899
0.466
0.991
0.830
0.741
$/MMBtu
TFDE NETBACK VALUES FOR October 2015

Far East
Trinidad
Northeast Asia
Tokyo
Middle East
6.862
North Africa
6.292
West Africa
6.496
7.202
6.249
7.338
7.100
Australia
N Europe
6.052
Pyeong Taek
6.894
6.324
6.525
7.228
6.278
7.299
7.108
6.085
Guangdong
6.987
6.419
6.616
7.312
6.370
7.229
7.182
6.180
Yung An
6.964
6.403
6.606
7.307
6.351
7.261
7.178
6.157
Singapore
Map Ta Phut
Hazira
7.009
6.996
7.156
6.443
6.429
6.590
6.631
6.620
6.617
7.262
7.284
6.994
6.385
6.374
6.275
7.017
7.072
6.746
7.174
7.167
6.941
6.205
6.191
6.354
Jebel Ali
6.814
6.183
6.117
6.493
5.867
6.244
6.439
5.946
Mina Al Ahmadi
6.909
6.250
6.185
6.560
5.934
6.311
6.507
6.014
Aliaga
6.140
6.595
6.298
5.883
6.286
5.630
5.829
6.362
Revithoussa
6.239
6.707
6.410
5.981
6.398
5.728
5.927
6.474
Rovigo
5.399
5.911
5.614
5.141
5.602
4.887
5.087
5.678
Huelva
5.752
6.415
6.170
5.493
6.162
5.239
5.438
6.239
Sines
5.742
6.405
6.171
5.483
6.171
5.229
5.428
6.253
Rotterdam
5.175
5.842
5.609
4.915
5.634
4.659
4.859
5.866
Zeebrugge
5.137
5.803
5.571
4.877
5.595
4.621
4.821
5.820
Montoir
5.162
5.827
5.595
4.902
5.614
4.647
4.846
5.777
Isle of Grain
5.197
5.864
5.631
4.937
5.656
4.682
4.882
5.878
Sabine Pass
5.549
6.223
6.125
5.284
6.458
5.300
5.560
6.208
Quintero
6.374
6.659
6.776
6.503
6.775
6.570
6.602
6.498
Guanabara Bay
6.492
6.918
7.005
6.515
7.032
6.280
6.584
6.758
Bahia Blanca
6.422
6.769
6.867
6.451
6.884
6.359
6.520
6.609
Blue shade denotes transit through Suez. For further explanation of ICIS Shipping costs see the methodology
News
charter rates
$/d
Steam
Week on week diff Data used
TFDE
Week on week diff
Data used
Atlantic prompt
21000
31000
5000
Pacific prompt
21000
30000
5000
Mid-term
17000
24000
Long-term
25000
55000
NBP vs HENRY HUB: OCTOBER '15 CONTRACT
$/MMBtu
8
7
6
5
4
3
2
1 Apr
2015
1 May
2015
1 Jun
2015
1 Jul
2015
NBP
3 Aug
2015
1 Sep
2015
Henry Hub
SOURCE: ICIS, NYMEX
20
20
16
16
12
12
Jun
2014
Aug
2014
Oct
2014
Settlement front-month Henry Hub
Dec
2014
Feb
2015
Apr
2015
Weighted average LNG import price
Jun
2015
Billions of cubic feet
$/MMBtu
HENRY HUB vs LNG PRICES 2014/2015
LNG volume
Market Report
Back to
contents
Continued from page 3

also available. The FOB cargo tender, which
opened on 7 September, is due to close on
14 September, with an award later next
week. The scheduled cargo loading is 22-24
September. The short lead-time between the
tender award and lifting date is expected to
limit participation.
Bidders with flexibility in their in-house
shipping fleets, however, can face competition from others that tap the charter market.
Shipowners Golar, NYK and Cardiff Marine
are all reported to have one cold ship each
that can be used by charterers. Rates for
these would likely fall between $28,000/day
to $35,000/day, according to shipbrokers
surveyed by ICIS.
NYK is reported to be offering a discount to its two rivals to compensate for
the more limited destination flexibility of
its 177,000cbm Grace Dahlia. The vessel
cannot berth at certain South American
and Middle East import terminals due to
compatibility reasons. Warm ships are also
available with nearby Angola LNG tonnage
as well as Chevrons 160,000cbm Asia Vision
near Gibraltar.
Positioning costs will be an important
factor in this for some owners, one shipbroker said, as rates under $30,000/day during
a less than 20-day charter hire period may
prove uneconomic. The number of days it
take to reposition for only a short charter
will put some owners off, the shipbroker
said. Other shipowners, meanwhile, have
confirmed tonnage will be simply unable
to arrive in Nigeria on time. Two cold vessels available in northwest Europe starting
in mid-September are unable to make the
journey in time to lift the Nigerian cargo.
SOURCE: NYMEX/US Dept of Energy
EAST ASIA LNG VS NBP FRONT-MONTH HISTORIC CLOSES
25
$/MMbtu
20
15
10
5
0
5 Sep
2014
7 Oct
6 Nov
5 Dec
7 Jan
6 Feb
9 Mar
EAX
SOURCE: ICIS
8 Apr
11 May
10 Jun
10 Jul
Bunkers: spot delivered prices
$/tonne
IFO 380
Location
10 Aug
NBP
IFO 180
MDO
10/09/2015
03/09/2015
Change %
10/09/2015
03/09/2015
Change %
10/09/2015
03/09/2015
ROTTERDAM
231.00
239.00
-3.35
255.00
274.50
-7.10
n/a
n/a
n/a
HOUSTON
238.00
241.00
-1.24
376.00
380.00
-1.05
n/a
n/a
n/a
FUJAIRAH
244.00
250.50
IFO 380
-2.59
264.50
283.50
IFO 180
-6.70
n/a
n/a
MDO
n/a
10/09/2015
03/09/2015
Change %
10/09/2015
03/09/2015
Change %
10/09/2015
03/09/2015
Change %
235.00
250.00
-6.00
248.00
259.00
-4.25
441.00
439.00
0.46
Location
SINGAPORE
Change %
Tenders
Latest Global LNG Tenders 10 September 2015
Buy/
sell
Tenderer
Shipping
basis
Buy
Pakistan State Oil
DES
Port Qasim
25/12/2015
27/12/2015
16/07/2015
15/10/2015
Open
15/07/2015
Buy
Pakistan State Oil
DES
Port Qasim
25/11/2015
27/11/2015
16/07/2015 23/09/2015
Open
15/07/2015
04/09/2015
Location
No. of Delivery/Lifting Delivery/Lifting

cargoes
start
end
Tender
open
Tender
close
Status
Information
updated
Sell
BP
DES/FOB
Tangguh
25/10/2015
05/11/2015
31/08/2015
11/09/2015
Open
Sell
Gladstone LNG
DES or FOB
Gladstone
01/10/2015
31/12/2015
24/08/2015 14/09/2015
Open
25/08/2015
Sell
NLNG
FOB
Bonny
22/09/2015
24/09/2015
07/09/2015 14/09/2015
Open
08/09/2015
Buy
NEPCO
DES
Aqaba
76
01/01/2016
31/12/2019
23/07/2015 02/09/2015
Closed
03/09/2015
Buy
GAIL
DES
Dahej/Dabhol
12
01/01/2016
31/12/2016
11/08/2015 26/08/2015
Awarded
09/09/2015
Sell
CNOOC
DES/FOB
Gladstone
15/10/2015
15/11/2015
02/09/2015 08/09/2015
Closed
08/09/2015
Buy
Pakistan State Oil
DES
Port Qasim
06/10/2015
18/10/2015
16/07/2015 26/08/2015
Closed
27/08/2015
Sell
PNG LNG
FOB
Port Moresby
21/09/2015
30/09/2015
24/08/2015 03/09/2015
Closed
03/09/2015
Buy
EGAS
DES
Aqaba
01/09/2015
31/10/2015
21/08/2015 25/08/2015
Awarded
03/09/2015
Sell
Pertamina
FOB
Bontang
15/09/2015
30/09/2015
31/08/2015 03/09/2015
Awarded
08/09/2015
Sell
Trinling
FOB
Point Fortin
23/09/2015
23/09/2015
14/08/2015 27/08/2015
Awarded
28/08/2015
Sell
ADGAS
FOB
Das Island
18/09/2015
20/09/2015
17/08/2015 24/08/2015
Closed
24/08/2015
Buy
ENARSA/YPF
DES
Escobar
01/10/2015
15/10/2015
12/08/2015 20/08/2015
Closed
20/08/2015
Buy
ENARSA/YPF
DES
Bahia Blanca
01/10/2015
15/10/2015
12/08/2015 20/08/2015
Awarded
24/08/2015
Sell
BHP Billiton
FOB
Dampier
12/10/2015
12/10/2015
12/08/2015 17/08/2015
Awarded
24/08/2015
Buy
NEPCO
DES
Aqaba
06/10/2015
13/10/2015
12/08/2015 18/08/2015
Closed
18/08/2015
Sell
Pertamina
FOB
Bontang
20/10/2015
30/10/2015
24/08/2015 27/08/2015
Closed
27/08/2015
Sell
Sakhalin Energy
DES
Sakhalin
01/10/2015
31/12/2015
14/08/2015 19/08/2015
Closed
19/08/2015
Buy
GAIL
DES
Dahej/Dabhol
01/10/2015
31/12/2015
11/08/2015 14/08/2015
Awarded
26/08/2015
Buy
EGAS
DES
Ain Sukhna
45
01/10/2015
06/12/2016
08/07/2015 02/08/2015
Closed
05/08/2015
Sell
Galp Energia
FOB
Bonny
01/10/2015
30/09/2016
22/07/2015
Awarded
28/07/2014
01/10/2015
31/12/2016
23/03/2015 27/03/2015
Closed
05/06/2015
Awarded
25/08/2015
28/07/2015
Buy
GAIL
DES
Dahej, Dabhol,
Hazira
Sell
Point Fortin LNG

Exports
FOB
Point Fortin
24/09/2015
24/09/2015
24/08/2015 27/08/2015
Buy
NEPCO
DES
Aqaba
21/09/2015
24/09/2015
16/07/2015
27/07/2015
Closed
03/08/2015
Sell
Point Fortin LNG

Exports
FOB
Point Fortin
20/09/2015
20/09/2015
07/08/2015
11/08/2015
Closed
03/08/2015
Buy
ENARSA/YPF
DES
Escobar
09/09/2015
10/09/2015
30/07/2015 05/08/2015
Closed
05/08/2015
Awarded
17/08/2015
Buy
Israel Electric Corp
DES
Hadera/Limasol
07/09/2015
14/09/2015
10/08/2015 17/08/2015
Buy
Pakistan State Oil
DES
Port Qasim
07/09/2015
19/09/2015
16/07/2015
17/08/2015
Closed
17/08/2015
Buy
ENARSA/YPF
DES
Escobar
04/09/2015
06/09/2015
30/07/2015 05/08/2015
Closed
06/08/2015
Sell
PNG LNG
DES
Port Moresby
04/09/2015
05/09/2015
06/07/2015
Buy
GAIL
DES
Dahej
01/09/2015
31/10/2015
20/07/2015 03/08/2015
13/07/2015
Buy
CFE
DES
Altamira
01/09/2015
31/12/2015
24/07/2015
Sell
Pertamina
FOB
Bontang
12
01/09/2015
31/12/2015
16/06/2015 18/06/2015
28/07/2015
Closed
28/07/2015
Awarded
07/08/2015
Closed
29/07/2015
Awarded
07/07/2015
Buy
NEPCO
DES
Aqaba
01/09/2015
04/09/2015
16/07/2015
27/07/2015
Closed
16/07/2015
Buy
ENARSA/YPF
DES
Bahia Blanca
21/08/2015
26/09/2015
07/07/2015
16/07/2015
Awarded
20/07/2015
Buy
ENARSA/YPF
DES
Escobar
18/08/2015
10/09/2015
07/07/2015
16/07/2015
Awarded
31/07/2015
Buy
Pakistan State Oil
DES
Port Qasim
17/08/2015
19/08/2015
16/07/2015
28/07/2015
Closed
30/07/2015
Buy
CPC
DES
Yung An
15/08/2015
30/09/2015
20/07/2015
24/07/2015
Closed
20/07/2015
Back to
contents
Additional fields and history are available via the ICIS FTP service. These include additional delivery/lifting details and tender participants
Trades
Delivered Ex-Ship transactions

Buyer
JX Nippon Oil
& Energy
Seller
Transaction
date
Delivery
period
Price
$/MMBtu
Vessel
Origin
Destination
Information
updated
TBC
31/08/201504/09/2015
15/10/201531/10/2015
$7.50-$7.70
TBC
TBC
Hachinohe
07/09/2015
Petrobras
Statoil
TBC
TBC
TBC
Golar Glacier
Snohvit
TBC
04/09/2015
TBC
Kyushu
29/08/2015
TBC
TBC
Echigo Maru
Bontang
TBC
03/09/2015
IEC
BP
18/08/201525/08/2015
11/09/2015
TBC
British Trader
Point Fortin
Limassol
09/09/2015
BG Group
17/08/201521/08/2015
01/10/201531/12/2015
$7.50-7.99/
MMBtu
TBC
TBC
Dahej
26/08/2015
Statoil
20/08/2015
01/10/201515/10/2015
$7.70-$7.90
TBC
TBC
Bahia Blanca
24/08/2015
BG Group
TBC
03/09/201504/09/2015
$7.60-$7.99
Methane
Princess
QCLNG
Dahej
24/08/2015
ENARSA
Gas Natural
Fenosa
18/10/201322/10/2013
14/09/2015
$7.00-7.50
Iberica Knutsen
Point Fortin
Escobar
08/09/2015
ENARSA
Gas Natural
Fenosa
18/10/201322/10/2013
13/09/2015
$7.00-7.50
Arctic Spirit
Point Fortin
Escobar
08/09/2015
Petrobras
BG Group
TBC
12/09/2015
TBC
Gaslog
Singapore
Punta Europa
Salvador
08/09/2015
ENARSA
Statoil
17/07/2015
12/09/2015
$7.80-$8.00
Arctic Aurora
Snohvit
Bahia Blanca
24/08/2015
ENARSA
Statoil
17/07/2015
05/09/2015
$7.75-$8.00
Arctic Princess
Snohvit
Bahia Blanca
24/08/2015
TBC
LNG River
Orashi
Bonny
Manzanillo
24/08/2015
GAIL
ENARSA
GAIL
CFE
Trafigura
23/01/2015
14/09/201530/09/2015
CFE
Trafigura
23/01/2015
09/09/201515/09/2015
TBC
Gaslog Seattle
Point Fortin
Manzanillo
24/08/2015
CFE
Trafigura
23/01/2015
02/09/201515/09/2015
TBC
Sevilla Knutsen
Point Fortin
Manzanillo
24/08/2015
Gas Natural
Fenosa
18/10/201322/10/2013
31/08/2015
$7.00-7.50
Castillo De
Villalba
Point Fortin
Escobar
24/08/2015
Trafigura
23/01/2015
29/08/2015
7.80-8.00
Gallina
Point Fortin
Manzanillo
24/08/2015
Ras Laffan
Dahej
03/09/2015
ENARSA
CFE
Petronet
RasGas
TBC
28/08/2015
$7.73-7.75
Maran Gas
Asclepius
Reliance
Industries
Oman LNG/
Union Fenosa
Gas
TBC
27/08/2015
$6.39-6.40
Ibra LNG
Qalhat
Hazira
03/09/2015
Petrobras
BG Group
TBC
27/08/2015
TBC
Gaslog
Shanghai
Bonny
Salvador
28/08/2015
ENARSA
Gas Natural
Fenosa
18/10/201322/10/2013
27/08/2015
$7.00-7.50
Polar Spirit
Point Fortin
Escobar
24/08/2015
Petronet
RasGas
TBC
19/08/2015
$7.24-$7.30
Al Sahla
Ras Laffan
Dahej
04/09/2015
Petronet
RasGas
TBC
17/08/2015
$7.58-$8.00
Al Marrouna
Ras Laffan
Dahej
04/09/2015
Petronet
RasGas
TBC
17/08/2015
$7.60-$7.70
Murwab
Ras Laffan
Dahej
04/09/2015
Petronet
RasGas
TBC
04/08/2015
$7.38-$7.40
Al Sahla
Ras Laffan
Dahej
04/09/2015
Kyushu
Electric
BG Group
TBC
19/07/2015
$7.48
Galog Savannah
Punta Europa
Oita
02/09/2015
Back to
contents
The information in this table is the most accurate obtainable by ICIS at the time of publication. It does not necessarily represent deals confirmed by counterparties. The information may be amended or updated in subsequent issues.
Trades
Free on board transactions

Buyer
Seller
Transaction
date
Lifting period
Price
$/MMBtu
KOGAS
Pertamina
04/09/201507/09/2015
15/09/201530/09/2015
$7.00-$7.40
TBC
Bontang
09/09/2015
Trinling
27/08/2015
23/09/2015
$7.00-$7.40
TBC
Point Fortin
28/08/2015
BHP Billiton
24/08/2015
12/10/2015
TBC
GasLog
Chelsea
North West Shelf
09/09/2015
PFLE
14/08/2015
20/09/2015
$7.40-$7.60
Golar Snow
Point Fortin
19/08/2015
Gas Natural
Fenosa
Mitsui
Shell
Vessel
Load Port
Information
updated
06/09/2015
TBC
Esshu Maru
Ras Laffan
08/09/2015
TBC
14/08/2015
$7.20-$7.50
Asia Vision
Rotterdam
10/08/2015
EconGas
TBC
06/08/201507/08/2015
$7.20-$7.50
SCF Melampus
Rotterdam
05/08/2015
BG Group
BHP Billiton
05/06/2015
05/08/201506/08/2015
$7.00
Methane
Mickie Harper
North West Shelf
05/08/2015
Total
Pertamina
TBC
07/07/201510/07/2015
$7.40-$7.60
Seri Balhaf
Bontang
05/08/2015
Trafigura
NLNG
TBC
08/11/2015
TBC
LNG Port
Harcourt
Bonny
19/08/2015
Trafigura
TBC
TBC
08/06/2015
TBC
SCF Melampus
Gate
19/08/2015
Petrobras
TBC
TBC
02/08/2015
TBC
Golar Celsius
Sines
19/08/2015
Petrobras
Vitol
Shell
TBC
EconGas
Trafigura
Shell
TBC
30/07/2015
TBC
Gallina
Point Fortin
19/08/2015
Trafigura
NLNG
TBC
19/07/2015
TBC
LNG Lagos
Bonny
19/08/2015
Trafigura
EconGas
TBC
19/07/2015
TBC
Galicia Spirit
Rotterdam
30/07/2015
Petrobras
TBC
TBC
16/07/2015
TBC
Cool Runner
Ras Laffan
03/08/2015
Trafigura
NLNG
TBC
15/07/2015
TBC
Madrid Spirit
Bonny
19/08/2015
Petrobras
TBC
TBC
15/07/2015
TBC
Grace Dahlia
Ras Laffan
06/08/2015
Punta Europa
20/08/2015
Trafigura
BG Group
TBC
11/07/2015
TBC
Maran Gas
Coronis
Trafigura
Centrica
TBC
04/07/201512/07/2015
TBC
Magellan Spirit
Isle of Grain
30/07/2015
ConocoPhillips
05/06/2015
30/06/201501/07/2015
$7.00-$7.10
Clean Planet
Darwin
08/06/2015
TBC
TBC
28/06/201530/06/2015
TBC
WilPride
Huelva
30/07/2015
Qatargas
TBC
03/07/2015
TBC
Exquisite
Ras Laffan
09/07/2015
Trafigura
TBC
TBC
30/06/2015
TBC
Golar Seal
Ras Laffan
03/07/2015
Trafigura
Pavilion
01/05/201508/05/2015
30/06/2015
$7.50
Yari LNG
Dampier
03/07/2015
Petrobras
TBC
TBC
27/06/2015
TBC
Excelsior
Ras Laffan
30/06/2015
PetroChina
Gunvor
Pakistan State
Oil
Trafigura
NLNG
TBC
26/06/2015
TBC
LNG Edo
Bonny
19/08/2015
Trafigura
NLNG
TBC
21/06/2015
TBC
Hispania Spirit
Bonny
06/07/2015
Trafigura
TBC
TBC
19/06/2015
TBC
Golar Bear
Ras Laffan
19/06/2015
Petrobras
TBC
TBC
16/06/2015
TBC
Grace Dahlia
Ras Laffan
17/06/2015
Trafigura
NLNG
04/06/2015
15/06/2015
TBC
Excelerate
Bonny
17/06/2015
Back to
contents
The information in these tables is the most accurate obtainable by ICIS at the time of publication. It does not necessarily represent deals confirmed by counterparties. The information may be amended or updated in subsequent issues.
News
Indian imports in 22% monthly fall in August
Indian buyers received approximately
1.17m tonnes of LNG in August, a fall of
22% compared with July.
The August 15 intake represented the
biggest month on month drop in imports so
far this year and a drop of 14% compared to
the same period in 2014, according to data
compiled by ICIS.
Ample availability of cheap coal and fuel
oil for power generation, in addition to plentiful monsoon rains during July and August
led to the decrease in imports. Like previous
months, Qatar continued to provide most of
the volumes with Indian LNG buyer Petronet
receiving the bulk of those at its 10mtpa Dahej LNG terminal.
Kochi terminal received the least with only a

single cargo from BG Group.
In July, Kochi did not receive any shipments but the monthly national intake was
higher with 23 shipments recorded at Dahej
and Hazira terminals, of which 14 were procured on a long and mid-term basis and eight
on a spot and short-term basis.
Last year the majority of volumes were
secured by Petronet through a long-term
7.5mtpa contract with Qatars RasGas. Following a renegotiation earlier this year, volumes received at the contractual price were
reduced by 30% - or 2.25mtpa - allowing for
this amount to be imported from RasGas on
a spot or short-term basis.
Steady flow of spot volumes
Decrease in average prices
Three terminals received 19 LNG shipments

in August, of which 11 are considered
as procured through long and mid-term
contracts while seven are thought to have
been secured on a spot or short-term basis.
The Dahej terminal received the most with
15 cargoes, of which 5 were spot, while the
The average price of all LNG deliveries into

India has seen a reduction of around 33%
to $9.15-$9.30/MMBtu during August
compared to the same period last year,
according to ICIS data. The Hazira terminal
received three cargoes in August at an average
price of around $7.00/MMBtu compared to
INPEX revises plans

for Abadi LNG after
bigger gas find
GNLS negotiating withdrawal from Uruguays

import project
Japan-based oil and gas company INPEX

has revised its development plan for the Abadi LNG project in Indonesia, after higher gas
volumes were found than initially estimated,
the company has said.
The company submitted its revised plan
of development (POD) to the Indonesian
Special Task Force for Upstream Oil and Gas
Business Activities (SKK Migas) on 3 September, after the find.
The revised plan includes the creation of a bigger floating LNG (FLNG) plant with a processing
capacity of 7.5 million tonnes per annum (mtpa).
The initial plan was for an FLNG with 2.5mtpa.
INPEX will consider the construction of
a new FLNG vessel upon the results of the
front end engineering design (FEED) work, a
spokesperson said.
INPEX has been mulling the increase in
output since April.
The Abadi gas field, located in the Masela
Block of Indonesias Arafura Sea, is being developed by INPEXs subsidiary, INPEX Masela together with Anglo-Dutch oil and gas major Shell.
INPEX Masela holds a 65% stake, with
the remaining 35% held by Shell, based on a
production sharing contract (PSC) controlled
by Indonesias SKK Migas.
The Abadi gas field is expected to contain
sufficient reserves to produce 7.5mtpa of
LNG for a period of about 20 years, as well as
24,000bbl of condensates per day, according
to INPEX. darren.david@icis.com
Continued from page 1

of a private-public partnership with an investor in order to expedite the project without
going through a formal tender process, the
spokesperson added.
A decision is not expected before the end
of year, while start-up of the project will almost
inevitably be delayed beyond the end of 2016
deadline put in place by GNLS earlier this year.
The GNLS consortiums departure from the
project first emerged at the end of August,
when Japanese conglomerate Marubeni issued a statement informing shareholders of its
decision to approve withdrawal plans drawn
up by the consortium. In the statement, released 28 August, Marubeni announced that
it would post an extraordinary loss of yen 23bn
($192m) for the financial year ended March
2016 following this decision.
The project has been mired in problems since
the start of this year, when one of the subcontractors developing the project entered bankruptcy.
Brazilian engineering company OAS was
contracted to construct onshore infrastructure for the Uruguayan facility. The companys insolvency earlier this year had forced
the original July 2015 deadline for the project
to be pushed back.
Work was then further delayed by labour
issues related to the collapse of OAS. Relations between GNLS and Uruguays government have also been soured by a dispute
surrounding financial guarantees paid by the
consortiums members.
Spokespersons at ENGIE and GNLS de-
an average price of $7.50-$7.70/MMBtu in

July for six deliveries, according to ICIS data.
Reliance is understood to be the recipient
of two deliveries at Hazira and GSPC, which
has one monthly slot at the terminal received
a Qatari delivery at around $7.25-7.30/MMBtu. The Dahej terminal received five cargoes
in the $7.30-7.70/MMBtu range last month
on a spot or short-term basis.
Back to
contents
Flurry of BG deliveries
BG Group increased its deliveries to India last
month by delivering three shipments. Two
cargoes from Australias Queensland Curtis
LNG (QCLNG) were sent to Dahej capacity
holders, GSPC and IndianOil. The delivery
for GSPC is understood to be the first from
a 1.25mtpa long-term contract agreed by
the two companies in 2013. BG Group
also delivered a Trinidad cargo to Kochi for
Petronet, ICIS understands. While Kochi can
re-export, the volumes are expected to be
regasified and used by domestic industry,
in spite of limited pipeline connectivity.
ranjana.kaushal@icis.com
clined to comment on the projects status and

the continued involvement of the consortiums stakeholders when contacted by ICIS.
ENGIE was selected to be the provider
and operator of the Uruguay project through
a tender organised by Gas Sayago which
concluded in 2013. Total investment in the
project was expected to reach $1.1bn, a
figure which included a $14m monthly rental
payment to GNLS for the 20-year subcharter
of the floating storage and regasification unit
(FSRU) provided for the project.
ENGIE had lined up a newbuild
263,000cbm FSRU for the GNL del Plata project from Tokyo-based shipbuilder Mitsui. The
vessel will remain under charter to ENGIE, the
Gas Sayago spokesman added.
Local assets of the project such as a 12km
gas pipeline linking the regasification site to
onshore networks and offshore breakwaters
will be transferred to Gas Sayago.
james.fowler@icis.com
Mexico Energy Report

The new ICIS Mexico Energy Report
is the first English-language product
focused exclusively on Mexicos
energy landscape, with news,
commentary and analysis on this
dynamic emerging market.
Find out more by visiting the Mexico
Energy Report page
News
Excelerate formally
withdraws floating
LNG project
Woodside in acquisition bid

for Oil Search
US-based LNG shipping and transportation provider Excelerate Energy has formally
notified federal regulators of its intent to
withdraw plans for a floating LNG export
project.
The filing was made on 2 September to
US Federal Energy Regulatory Commission
(FERC) that Excelerate was no longer pursuing the proposed two-train, Port Lavaca
floating liquefaction project and associated
pipeline in Texas.
Excelerate was once seeking to export
up to 10mtpa under a 20-year licence from
the US Department of Energy (DOE) to sell
to countries that do not have a free trade
agreement with the US, which are known as
non-FTA nations.
Having a non-FTA export licence is key in
order to sell to major LNG importers such as
Japan and countries in Europe.
However, Excelerate also stated in its 2
September filing that the company will provide a notice to withdraw separately to the
DOE.
The filing is a formal procedure that follows the initial suspension made in December
2014, once Excelerate informed FERC that
the project was being postponed due to
uncertain economic conditions, particularly
given the plunge in crude oil commodity pricing and how that has changed the perspective of prospective buyers.
The Lavaca Bay project is one of several
US LNG projects expected to fall off from the
permitting process.
UK-based BG Group announced its
intent to defer making a final investment
decision (FID) on the brownfield expansion
of the proposed 15mtpa Lake Charles export
project. US-based Energy Transfer is developing Lake Charles.
First LNG exports are expected to start
up by the end of this year or early next year
from the first four-train, 18mtpa phase of
US-based Chenieres Sabine Pass liquefaction
plant in Louisiana, which is currently under
construction.
Four other US brownfield export projects
are currently under construction: Freeport
LNG, Cameron LNG, Cove Point, and
Chenieres second complex, Corpus Christi
LNG. ruth.liao@icis.com
Perth-headquartered
LNG
exporter,
Woodside announced its bid to acquire Australia-listed producer Oil Search on 8 September.
The offer to Oil Search shareholders of
one Woodside share for every four of Oil
Search valued the latter at about $8bn at the
closing share price listed the Australian Stock
Exchange on 7 September.
Oil Search which is focused on LNG
production and development in Papua New
Guinea has said it is reviewing the non-binding proposal and has appointed US-based
bank, Morgan Stanley as its financial adviser.
Crude and LNG prices at cyclically low
levels are said to be encouraging merger and
acquisition activity.
With oil prices at current levels, Australian energy companies like Woodside may
see the feasibility in acquiring a profitable
company like Oil Search, especially with its
PNG LNG already producing cargoes, Singapore-based gas analyst at Wood Mackenzie,
Chong Zhi Xin said.
However, if the amount offered is not
attractive enough, the proposal may be
rejected, or possibly spark interest from competitors, Zhi Xin added.
Oil Search reported a net profit after tax
of $227.5m for the first half of 2015, a 49%
increase compared to the same period in
2014. The improvement has been attributed
to the Exxon-led PNG LNG plant which only
Back to
contents
began ramping up from April 2014. The

company has a 29% stake in the plant and
reported LNG production has risen almost
three times higher over the first half of this
year compared to last in its more recent earnings report.
Annualised production from PNG LNG
during the first half of this year is closer to
7.1mpta than its nameplate 6.9mpta, Oil
Search reported. While this has improved the
companys cashflow it also has a number of
LNG assets under development including a
third train at PNG LNG and a 23% stake in
the Total-led Papua LNG project.
Paris-based major, Total is targeting a final
investment decision on Papua LNG by early
2017 but only expects final upstream appraisals to be completed by the end of 2015 with
certification of reserves to come in early 2016.
There have been indications that a first phase
may involve two trains with third-party research showing the potential to build up to five
trains and produce over 17mtpa on the back
of discoveries in adjacent upstream blocks (see
GLM 13 January 2015). Both projects in Papua
New Guinea are said to have low development
costs in contrast to the estimated costs of unsanctioned Australian projects.
Woodside is being advised by American
bank, Merrill Lynch and international legal
firm, Herbert Smith Freehills.
darren.david@icis.com
10
News
Eneco extends Gate
capacity; focuses on
small-scale LNG
Dutch utility Eneco has extended its
capacity at the Gate terminal for a further
four years from 1 September but will now
dedicate this to the small-scale LNG market
as opposed to the conventional regasified
markets.
Although focusing on small scale and
lowering its regasification capacity from the
previous 1 billion cubic metre (bcm)/year,
Eneco will continue to use regasification, but
the new capacity is tailor-made for Enecos
ambitions in the small scale market.
A fresh LNG supply agreement from a
new supplier has also come into effect replacing Enecos previous mid-term 0.5bcm/year
LNG procurement contract which expired on
1 September.
Enecos small scale re-export contract
with Swedens AGA Gas has also expired
but the company has small-scale agreements
for truckloads to Prima LNG as well as to a
marine LNG buyer.
The Eneco extension comes amid various
capacity changes at the Netherlands Gate
terminal. Enecos initial four-year capacity was
derived from the release of DONG Energy but
the Danish company has now recovered this
to expand its current position from 2bcm/year
back to 3bcm/year.
From 1 October, the terminal will count
Anglo-Dutch major Shell as a new capacity
holder which, like Eneco, will also focus on
the small-scale market.
Shell has contracted to take 2bcm/year by
effectively replacing RWE as a primary capacity holder at Gate. RWE, however, will still be
able to receive volumes at the terminal and is
understood to have an agreement with Shell
equivalent for about 1bcm/year of receiving
slots.
Shell has taken capacity in order to feed
its position as the anchor customer for the
break-bulk facility that will open in 2016.
Breaking bulk involves breaking up a
larger LNG cargo to distribute in smaller
lots, such as through the small-scale truck or
barge sector or for use as a marine fuel.
German E.ON and Austrian Econgas are
also capacity holders at Gate.
ludovic.aldersley@icis.com
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11
News
Gazprom expects auction gas prices to be above long term
Russian producer Gazprom expects prices
in its current 3.24 billion cubic metre (bcm)/
year gas auction to be above its long-term
European contract prices, the company said
on Tuesday.
Gazprom has recently engaged more
closely with European companies to sell
additional gas and boost cooperation over
infrastructure projects.
However, the company would not confirm
to ICIS reports that no gas at all had been sold
in Mondays auction or discuss the situation
on Tuesday, saying it would comment once
all the auctions were over.
Between 7-9 September Gazprom Export
is auctioning 3.24bcm of gas for winter delivery in Europe in what it calls an attempt to
test a new mechanism for gas sales. Last
week Gazprom said 39 firms had registered
to participate.
The current average long-term contract
price of Russian gas has been falling because
oil-indexation in the pricing formula reflects
dropping oil prices.
It is currently around $230 per thousand
cubic metres (kcm, $6.40/MMBtu), according
to Gazprom, slightly below the GASPOOL
German hub price for Winter 16, according
to ICIS data.
However, the average Russian contract
price also includes contracts lower than $230/
kcm, so Gazproms expectation of the auction
price may mean a price that is lower than the
average.
The reduction in long-term contract
prices, with some at a discount to spot, creates an additional floor price as competition
for potential LNG imports over the winter.
Whether Gazprom repeats the auction if
there is little interest from European buyers
remains to be seen.
Some sources doubt the market needs all
the gas in the first place and believe Gazprom
will not sell significantly under contract price.
new gas volumes, which will be sought for in

Europe due to the continuous decline in its
domestic production, Miller said.
Financial details of the agreement were
not disclosed.
Nord Stream II agreement signed

Gazprom has also signed a shareholders
agreement on the implementation of the
Nord Stream II pipeline project with several
European partners.
The Nord Stream II project will see two
offshore pipelines built from Russia to Germany through the Baltic Sea with annual
capacity of 55bcm, German partner BASF
said in a statement.
The project will be developed by a new
company dubbed New European Pipeline.
Gazprom will own a 51% share in New
European Pipeline, while E.ON, Shell, OMV
and BASF/Wintershall will each own 10%.
Frances ENGIE will hold 9%.
Nord Stream II will double the throughput
of Gazproms direct supply route via the Baltic
Sea, according to Gazprom CEO Alexey Miller.
It is important that those are mostly the
Gazprom has recently been active in

pursuing deals to boost its role within the
German storage and trading sector.
julie.fisher@icis.com and
amy.booth@icis.com
Back to
contents
Latest ICIS China gas news

LNG-fuelled heavy truck sales weaken in 2015 on economic downturn
Apparent gas-consumption rises by 2.9% in Jan-Jul 2015: NBS
Datang International shelves gas-fuelled CHP project expansion plan
China and Russia enhance oil and gas cooperation on Sep state visit
CNG Energy Service wins subsidy for Hutubi biogas project
Find out more about our China gas market coverage at www.icis.com/energy
or get in touch with our sales team
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12
Stocks
EUROPEAN stocks
Injections slump as day-ahead premium persists

Injections into European natural gas storage sites slumped in the week to Tuesday, as
maintenance and short systems reduced the
amount of gas available for injections and
kept day-ahead contracts at a premium to
front months at a number of hubs.
Shippers injected 1.74 billion cubic metres
(bcm) of gas into storage during the week,
down from 2.19bcm over the preceding
seven days.
Day-ahead held its premium at hubs including the German NCG, where Day-ahead
closed 0.075/MWh above October 15 on
Monday according to ICIS assessments, and
Germanys GASPOOL hub, where Day-ahead
settled at a 0.175/MWh premium to the
front month.
Day-ahead contracts at many of the ma-
jor gas hubs have traded above their front

month equivalents for much of the summer
due to expectations of cheaper oil-indexed
gas arriving later in the summer. However,
it is unusual for October to be priced below
the day-ahead, as it is the first month of the
gas winter and heating demand would usually be expected to increase due to cooler
temperatures.
German traders last week expected this
premium to decline over the next week or so,
which should encourage larger quantities of
storage injections. In the week to Tuesday,
German shippers injected 478 million cubic
metres (mcm) of gas into stocks, while the
other two major storage providers, France
and Italy, recorded injections of 343mcm and
311mcm respectively.
Back to
contents
Sites across Europe ended the week just

over 70% full, a significant amount less than
on the same date last year, when they were
almost 90% full. There are now just over
three weeks remaining until the beginning of
the gas winter, when withdrawals traditionally begin, although injections can continue
into October and sometimes even early November depending on weather conditions.
julie.fisher@icis.com
Storage levels do not include strategic stocks
in Hungary, Italy, Poland, Portugal and Spain.
All data refers to the start of the gas day on
Tuesday, with the exception of Britain where
data refers to the start of the gas day on
Monday. The data is aggregated at a national
level and market area level by ICIS.
ICIS Stocks (million cubic metres)

Current Week Week 37
Previous Week Week 36
Year on year
% Full
Weekon-week
Change
Week-onweek %
Change
Maximum
Technical
Capacity*
% Fullness
1 year ago
Year on Year
% Full diff
2,407
59.62
70
2.91
4,037
97.78
-36.43
44.44
354
42.43
17
4.72
835
86.57
-42.13
2,508
85.56
2,417
82.46
91
3.77
2,931
97.96
-12.40
760
72.11
733
69.57
27
3.64
1,054
90.79
-18.68
France - PEG Nord
5,209
82.98
5,012
79.84
197
3.93
6,277
81.43
1.55
France - TRS
4,799
77.26
4,654
74.92
146
3.13
6,212
92.68
-15.42
Germany - NCG
7,395
72.08
7,211
70.28
184
2.55
10,260
91.62
-19.54
Germany - Gaspool
9,660
67.61
9,365
65.55
294
3.14
14,287
94.47
-26.86
Hungary
1,388
27.06
1,252
24.40
137
10.91
5,130
42.91
-15.85
Italy
10,346
86.67
10,035
84.06
311
3.10
11,938
92.92
-6.25
Netherlands - TTF
1,276
69.27
1,273
69.11
0.23
1,842
84.97
-15.70
Poland
1,729
86.84
1,651
82.92
78
4.72
1,991
93.87
-7.03
Hub Area
Stock
Level
Austria
Belgium Zeebrugge
Czech Republic
Denmark
% Full
Stock
Level
2,477
61.35
371
Portugal
0.00
0.00
38.92
0.00
0.00
Slovakia
2,047
61.03
1,963
58.55
84
4.26
3,354
99.69
-38.66
520
39.54
483
36.76
37
7.56
1,314
88.26
-48.72
Great Britain - NBP
3,815
68.59
3,750
67.43
65
1.73
5,561
91.98
-23.39
Total
54,299
70.46
52,560
68.21
1,739
2.26
77,062
88.90
-18.44
Spain
*excluding strategic stocks
13
Stocks
uS stocks
Stock growth above average despite oil fears
Billion cubic feet
US LOWER 48 GAS STOCKS

4000
90
3600
80
3200
70
2800
60
2400
50
2000
40
1600
30
1200
20
800
10
400
5
2015
10
15
2014
20
25
Weeks
30
Five-year average (2010-2014)
35
40
45
50
Percentage fullness
US natural gas storage levels continued

to rise over the week ended 4 September
despite expectations that US production will
begin to slow in the face of falling oil prices.
Storage stocks increased by 68 billion cubic
feet (bcf) - 1.9bcm - over the week ended 4
September, the Energy Information Administration (EIA) reported in its weekly gas storage
report released on 10 September.
The injection was 28% lower than the
previous week, largely on the back of lower
storage injections in the producing and eastern regions. By historical comparison, the
injection came in 26% lower than the yearago week; however the rate remains above
the 61bcf five-year average.
Total gas in storage now sits at 3.3 trillion cubic feet, equivalent to 84% of national
storage capacity and the highest level since
mid-December 2014.
With two months remaining of the injection season, inventories appear on course to
hit maximum capacity before the start of the
winter demand period, although the EIA has
warned that falling crude oil prices may cause
associated natural gas production to fall in the
coming months. james.fowler@icis.com
Back to
contents
Percentage of working capacity 2015
SOURCE: US DOE BA
Working Gas in US underground storage (billion cubic feet)

Week 35
Week 34
Change
%
Year ago
week
East
1,630
1,581
3.10
West
487
482
1.04
Producing
1,144
1,130
Total
3,261
3,193
Region
Change
%
5-Year
Average
Change
%
1,513
7.70
1,667
-2.20
436
11.70
469
3.80
1.24
838
36.50
997
14.70
2.13
2,788
17.00
3,134
4.10
Source: US Department of Energy EIA
14
News Briefs
Chubu underpins MOL,

NYK newbuild orders
Nagoya-based utility Chubu Electric has agreed
four long-term time charters underpinning four
newbuild LNG carriers that will lift LNG from
Freeport LNG on the US gulf coast.
Japanese shipowners MOL and NYK announced the agreements with Chubu and
the associated orders at various Japanese
shipyards on 9 September. Chubu Electric is to
own 50% in each vessel and will take delivery
under 20-year charters from the scheduled
2018 shipyard delivery. Chubu has a 20-year,
2.2mtpa tolling agreement from Freeport LNG
from 2018 and is sharing the offtake with
compatriot utility, Osaka Gas.
MOL and NYK will take the remaining 50%
in the ownership structure of two vessels. Each
joint venture has ordered one 180,000 cubic
metre (cbm) newbuild from MI LNG and one
177,000cbm newbuild from Kawasaki Heavy
Industries (KHI).
Both 177,000cbm carriers from KHI
will have dual fuel diesel electric propulsion
while the larger MOL-owned carrier will have
reheating steam turbines and the equivalent
NYK-owned carrier will have steam turbine
and gas engines.
The MI LNG group building the larger carriers is a joint venture established in April 2013
by Mitsubishi Heavy Industries and Imabari
Shipbuilding.
Japan August import

prices rise - METI
Japanese LNG consumers bought cargoes in
August for $8.10/MMBtu, down by 29% from
the same month the year before, according to
the countrys Ministry of Economy, Trade and
Industry (METI).
The price was up $0.20/MMBtu from July
in line with an increase in imported oil prices
for the month. LNG consumption is also
thought to have risen amid a heat wave that
struck the country in August. Utility Chubu
Electric said its thermal power output rose by
1.6% year on year, a rare increase as Japanese
electricity consumption has been in a steady
decline.
LNG arriving into Japanese ports during
August cost an average of $7.70/MMBtu, METI
numbers showed. That was down 38% from
the year before. METI did not have an average
arrival price for July because too few cargoes
arrived.
METI calculates the pricing by averaging all
the spot LNG contracts Japans utilities signed
during the month. METI polls 15 LNG end
users every month, asking Tokyo Electric Power
and others to voluntarily divulge the price data.
METI only releases prices if more than two
LNG end-users have concluded deals during
the month. The agency does not ask trading
houses for price information.
First Polish LNG cargo set

to arrive by years end
Polands first LNG terminal will receive its
inaugural cargo by the end of this year, stateowned terminal operator Polskie LNG said in a
statement on Wednesday. The operator, and a

consortium led by Italian oil and gas contractor Sajpem in charge of the construction of
the Polish terminal in the seaside town of
Swinoujscie, have sealed a deal under which
they committed to the first delivery, to be
brought in for testing purposes, before the end
of December.
The second LNG cargo, also for testing, is
set to arrive in Poland in the first quarter of
next year.
The statement also confirmed that the
terminal will be commercially operational by
the second quarter of next year, confirming
recent comments on the matter from treasury
minister Andrzej Czerwinski.
Once operational, Swinoujscie will be
capable of importing 3.9mtpa.
company overseeing gas exports to Turkey,

said Gazprom had not been formally warned
of any arbitration procedures initiated by
BOTAS. She said both sides had agreed on a
discount, but this had not been formalised yet.
The spokeswoman, however, could not clarify
an exact discount percentage that the parties
had agreed on. BOTASs request for a 15%
discount for its Russian gas imports has so far
been unsuccessful.
Turkeys reluctance to advance talks on
TurkStream, a 63 billion cubic metre/year pipeline designed to carry Russian gas to Turkey
and Europe, has also blocked progress on the
price discount front.
Speculation in the Turkish press that TurkStream would be cancelled were dismissed by
Gazproms deputy chairman Aleksandr Medvedev at a press conference on 7 September.
Israel accepts Jordan

pipeline, Leviathan plan
Venture Global files

application for US project
Israels government has approved plans to

build a natural gas pipeline to Jordan, a
spokeswoman from the finance ministry confirmed on Wednesday.
The countrys national planning and construction committee gave the green light on
Tuesday for a 15.5km pipeline to be constructed near the southern end of the Dead Sea.
The news comes as the Israel parliament
agreed to allow the development of the 22 trillion cubic feet (tcf) natural gas field Leviathan
and two smaller sites to go ahead, a source
close to the market has said.
However, for development work to start,
parliament needs to overrule the competition
authorities opposition to the development
plans. This would mean giving power to the
economy ministry to override the regulatory
authorities.
The major concern among the countrys
authorities was that a small group of companies would control the bulk of offshore gas
assets. The major shareholders in Leviathan are
US company Noble Energy and Israeli Delek.
They also own the 10tcf Tamar field that is
already in production, and smaller fields Karish
and Tanin.
The news comes shortly after the confirmation of the massive Zohr gas field discovery in
Egypt which could remove Egypt as a potential
buyer of Israeli gas.
The US-based firm Venture Global has progressed in its regulatory permitting with the
Federal Energy Regulatory Commission (FERC)
for the proposed Calcasieu Pass LNG project,
the company stated.
The project has submitted its FERC joint
application with the TransCameron Pipeline,
two proposed natural gas pipelines that would
connect the planned export project to the gas
grid.
The proposed 10mtpa project would
include construction of an on-shore liquefaction project, two LNG storage tanks and a
combined-cycle gas turbine power plant.
FERC will release either a draft environmental impact statement or an environmental
statement, which is available for public comment, before finalising that document and
issuing a final notice to proceed.
According to Venture Globals 8 September
statement, construction could begin in late
2016, pending approval from FERC.
First LNG could start by late 2019.
Arbitration looms as
TurkStream stalls
Turkeys natural gas incumbent BOTAS is
waiting for approval from the government to
initiate arbitration proceedings against Russias
Gazprom following a nine-month delay in
reaching an agreement over this years import
price.
The paperwork is ready for arbitration.
They [BOTAS] are just waiting for the green
light from the government, a source close to
the discussions has told ICIS.
The current political uncertainty in Turkey
however, means that no decision is likely to be
taken until a new government is formed after
elections in November.
A spokeswoman at Gazprom Export,the
Back to
contents
Netherlands ready for

Groningen hearing
A Dutch court will hear public objections to
the governments Groningen gas production
strategy in a procedure beginning at 11:00
Amsterdam time on 10 September.
Public safety concerns have increased in recent years, following an rise in the frequency of
earth tremors resulting from gas extraction from
the Groningen field. This in turn has forced the
government to revise down production caps on
a number of occasions.
The Council of State the Netherlands
highest general administrative court organised the hearing earlier this year following
objections from 40 parties against the governments December 2014 decision to cut the
2015 production limit from 42.5 billion cubic
metres (bcm) to 39.4bcm.
Since then, the Dutch government has
lowered the annual cap again to 30bcm for
the 2015 calendar year and 33bcm for the
2015 Gas Year.
In August 2015, Groningen output fell to a
four-year low.
15
Focus
Back to
contents
denkou images/rex features
Spains market comes in from the cold

The Spanish AOC has long been a premium market in Europe but the
chances of a rise in LNG imports amid a global oversupply could bring
it closer in line in price with even Europes most liquid traded hubs
Shippers used to
take advantage of
diversion clauses
away from Spain
and Portugal
In the run up to additional LNG production

coming online in Australia and the US, GLM
will look at the potential impact on various
regions and key markets. This week, Europes
historically largest LNG importer - and reloader - Spain.
For many markets in Europe, the implication of a global gas oversupply is likely to
be felt in terms of the greater availability of
competitive LNG, pressurising hub prices
traditionally supplied more with pipeline gas.
Liquid hubs with LNG import capacity, such
as the Dutch TTF, British NBP and Belgiums
Zeebrugge may be obvious ports of call should
other markets prove unable to absorb length.
But in the case of shippers in Spain and
Portugal, the arrival of new, cheap spot LNG
is not the issue at least, not a direct one.
Rather it is the prospect of Spain receiving
more of what it is already contracted to receive under long-term take-or-pay contracts.
A sustained period of high LNG spot
prices in recent years allowed Iberian shippers
to optimise unwanted LNG by taking advantage of clauses in their contracts that allowed
them to divert cargoes to global spot markets, rather than actually taking delivery into
Spain or Portugal. It has also kept unwanted

gas off the hub, keeping hub prices opaque.
One example of this is Portuguese incumbent Galp Energia, which recently signed a
deal to supply a strip of LNG from its offtake
position with Nigeria LNG (NLNG) to other
markets. Deals like that may now become a
lot harder to achieve. And should there be no
alternative but to take delivery of contracted
LNG, Spain and Portugal could become long
very quickly, sources say.
There may not be such a need for LNG
these coming months [globally]; LNG that
was being diverted elsewhere will now come
[to Spain], one trader told ICIS.
I dont expect there to be many [diversions or] reloads: The gas will come [to Iberia]
no matter what.
Over the last few years the majority of
Spains divertible volumes have been diverted.
This would now likely change, the source
said, which in principle would then pressure
prices at the AOC.
Some Omani cargoes were being exported to Kuwait, for example. So we might
see Omani cargoes coming to Spain [if they
cannot be sold elsewhere].
16
Focus
Limited pipeline export options

But not only is Iberia as a whole unable to
consume all of the gas it is committed to take;
it is also unable to transport this gas easily
via pipelines to more liquid markets north of
the border, should prices fall low enough to
encourage that direction of travel.
Spain is unique in Europe in that its market
has been very much designed around LNG
imports. With no indigenous gas, the countrys
diversified portfolio of LNG accounts for approximately half of all Spanish imports.
For a long time this has ensured a degree
of separateness from the rest of continental
Europe, and this is evident to this day in the
shape of the countrys extremely limited level
of interconnection with the rest of mainland
Europe, excluding Portugal.
As a ball park figure, EU nations should
have a level of interconnection with their
neighbours of at least 10% of total demand,
according to guidelines set by the European
Commission. Yet while national markets
in the most liquid northwest Europe (NWE)
area frequently enjoy well in excess of this,
in Spain it stands at around half this target
figure.
That will change slightly this year, when an
upgrade boosting the transmission capacity
between Spain and France by 29%, launches
on schedule on 1 December. However, even
with the increase, Spain will still have only
have 225GWh/day of export capacity less
than 20 millin cubic metres/day.
Spain will get overloaded with LNG in
its own market. They cannot really export
through pipelines [to Europe] as there isnt
enough capacity, Edward Stock, Independent Consultant at Artaois Ltd told ICIS.
I think net physical flows from Spain
to France will happen. However, with
175GWh/day, [rising to 225GWh/day when
the new link is expanded in December, it was
doubtful that there would be enough export
capacity, Stock said.
Currently, prices in Spain remain, on the
near curve at least, above those north of the
border in France, although that is now changing.
But even without a clear Spanish discount,
there has been interest in flowing from Spain
to France, with nominations having risen to
an average of 28GWh/day throughout this
summer, after many years of being at zero.
This hints at what could be about to come,
some traders believe, with a trickle becoming
a flood if Spain is overrun with LNG.
Nominated gas
flows from Spain
to France have
increased and are
likely to go higher
lesser degree Portugal have made a name
for themselves as the go-to markets for LNG
reloads. Spain alone exported around 4.4
million tonnes of LNG in 2014: a figure that
qualified the country as the biggest exporter
of LNG in Europe that year.
However, this option is likely to be difficult
for much the same reason that apply to LNG
diversions with limited demand in receiving
markets and increasing new production in
both Atlantic and Pacific basins.
I dont think reloads are viable at the
moment, another trader said.
Looking beyond the spot market, as a
country in which practically all of the gas imported is under long-term contracts indexed
to oil, Spain has been a beneficiary of lower
gas prices in recent months.
However, many of the markets to which
Spanish shippers had reloaded when supplies
were tight and prices high Asian markets
such as Japan and South Korea were also
linked to oil and so have enjoyed similar advantage.
As a result, they would presumably utilise
contract flexibility themselves first before
resorting to the spot market, the trader argued, further reducing potential markets for
Iberian shippers with long-term take-or-pay
contracts.
The market is potentially very long, he
said. I would expect that in Summer 2016
we will see a lot of LNG coming to Europe.
This theory is borne out by the current
situation on the Spanish gas price curve, data
from ICIS shows.
After many of years of Spain being among

the most expensive markets in Europe, prices
entailing 2016 delivery have come down
considerably.
With AOC Calendar Year 16 below 20/
MWh ($6.5/MMBtu), it is currently cheaper
than all but the most liquid traded gas markets in Europe the likes of the TTF, NBP and
the German gas markets are around 0.1-0.3/
MWh cheaper than AOC, ICIS data shows.
However, north of the border in Frances
southern TRS zone, as well as in Italys PSV
and the markets of Eastern Europe, the AOC
is now looking cheap. But further price reductions are likely, traders say.
Theres still a big mismatch between
Spanish prices and LNG prices at the moment, the first trader commented. AOC
prices would have to come down if they were
to prove attractive enough to encourage
flows to other markets.
I expect that in Summer 2016 we will
see quite a lot of LNG volume coming into
Europe, another trader said. And if youve
got this view that LNGs coming to Europe,
the markets youd sell are AOC and TRS, he
concluded.
Almost inevitably, the effect of extra LNG
coming to Spain and Portugal would be to
depress prices within the country, he said.
I think people are doing spreads on TTF,
PEG Nord or whatever We need a shift
down at the AOC.
Spain is already seeing an uptick in curve
activity the like of which it has never experienced as some shippers attempt to hedge out
some of their length.
Many traders active in Spain now expect
the ensuing supply imbalance to force Spanish hub prices lower, potentially boosting
liquidity as shippers struggle to contend with
more and more gas.
Spain now faces the prospect of being
the canary in the mineshaft a barometer
for the increasingly likely effects of rising LNG
supply on Europe. rob.songer@icis.com
Back to
contents
SPANISH AOCS FRONT QUARTER PREMIUM NARROWS

$/MMBtu
20
Dutch TTF
Italian PSV
Spanish AOC
16
12
Reloads
Aside from its LNG diversions, the number of
which are hard to quantify as the information
tends to be confidential, Spain and to a
Jan
2014
Mar
2014
May
2014
Jul
2014
Sep
2014
Nov
2014
Jan
2015
Mar
2015
May
2015
Jul
2015
Sep
2015
SOURCE: ICIS
17
Highlights from LNG Edge
Back to
contents
Malaysia as an exporter and importer

MALACCA IMPORT SOURCES, SEP '14
TO DATE (TOTAL SHIPPED CAPACITY)
2015 VERSUS 2014 VESSELS LOADED FROM BINTULU
35
sia
lay
ea
Ma
in
4% e
nc
Gu
Fra % rial
4 to %
4
ua
Eq
Number of shipments
2015
2014
30
Egy
pt
4%
25
Brunei
7%
20
Australia
8%
Norway
7%
Oman
8%
Qatar
8%
Ye
m
4% en
Algeria
27%
15
SOURCE: ICIS LNG Edge
10
BINTULU EXPORT DESTINATIONS,

SEP'14 TO DATE
Nigeria
15%
August
July
June
May
April
Kuwait <1%
Malaysia <1%
Thailand <1%
India <1%
Singapore 1%
Malaysia exports about three times as

many shipments as it imports, but its
range of import sources is far
greater than its export destinations
Fewer shipments from Bintulu have
coincided with more spot exports but the
range of importers is still greater
Malaysia has long been an LNG
exporter but has also been importing
since 2013.
The 3.8mtpa Malacca import
terminal has received shipments
from 12 different countries over the
12 months to September. The most
recent was sourced as far away as
Equatorial Guinea.
Two-to-three shipments have arrived every month this year except in
August and May with just one cargo.
In the last 12 months, Malaysias
state-owned energy company PETRO-
Only one cargo to

Malacca has been
domestically sourced in
the last 12 months
NAS, which both exports from Bintulu

and imports at Malacca, has only sent
one domestic cargo to Malacca.
Algeria has been the largest
source of imports on the back of
a mid-term supply agreement with
Paris-based GDF SUEZ. Norways
Statoil also supplies contractual LNG.
Exports
More than 60% of Malaysias exports
head to Japan, underpinned by longterm contracts.
Up until May, the remainder has
gone exclusively to China, Taiwan
and South Korea. Between May and
July, Kuwait, Singapore, Thailand,
and India all received Bintulu-sourced
cargoes. These are considered as
spot, sold either through FOB or DES
agreements. Year on year, Bintulu
shipments recorded their largest falls
in April, June and August.
South Korea
15%
Japan
61%
Taiwan
11%
China
12%
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LNG Edge, the latest addition to the ICIS LNG

product portfolio, giving you access to:
Real-time global fleet view
LNG spot cargoes indicated on map
LNG spot prices displayed per port
Interactive tender information on map
Vessels charterer, destination and
predicted path
Updates on abrupt course changes and ETAs
LNG Edge is a dedicated LNG trading
analytics and tracking platform - accessible
online.
It is powered by the combination of ICIS
LNG market intelligence, state of the art
tracking and predictive technology, with
vessel positioning feeds supported by the
worlds two biggest constellation satellite
providers.
These unique resources set LNG Edge
apart from the rest, delivering unmatched
transparency and actionable intelligence
to its subscribers.
Charter availability and rates

Vessels search functionality by port,
status and compatibility
Companys ranking, charters, trades and
plant ownership
Live, downloadable import-export volume data
Customisable reports and dashboard
Real-time LNG news feed
With the right tools and information,

its easy to stay ahead...
Whether you are a trader, analyst or shipping manager,

LNG Edge will help you achieve efficiency in your trading functions.
Book a demo now with our sales team

www.icis.com/LNG-Edge-demo
enquiry@icis.com
18
GLM Comment
Open land and shale gas in south Texas have
attracted LNG export developers but the
outlook for greenfield sites is still muted
US greenfield
export projects
face greater
opposition than
brownfield sites
Four LNG export projects have filed for

US Department of Energy (DOE) regulatory
approval to export from sites in Brownsville,
south Texas, but these greenfield projects
face a long road ahead in overcoming local
approvals, securing feedgas and marketing to
downstream customers.
The projects include the proposed 7mtpa
Annova LNG, 4mtpa Texas LNG and a pair
by the same developer known as EOS and
Barca LNG - each of 2mtpa and submitted
under one application - with a fourth venture
known as Rio Grande LNG. Freeport LNG
CEO Michael Smith also has a site in Brownsville but has not moved ahead on permitting
or developing it.
The Brownsville projects are in nascent
development, particularly compared with
the five liquefaction complexes in the US
currently under construction, all of which are
existing import LNG terminals and are considered to have a greater brownfield cost advantage. The south Texas projects proposed
in Brownsville are also facing a far greater
public backlash from local residents than the
US Gulf-based projects.
On 1 September, the Laguna Vista Town
Council and South Padre City Council, two
of the area communities, adopted resolutions
to oppose LNG export project construction
along the Brownsville Ship Channel, where
the projects are proposed.
In eastern Texas and western Louisiana,
where there is an influx of petrochemical,
refinery and industrial users, the development
of LNG export plants did not draw as many
challenges from local communities from the
sanctioned projects under construction.
All of the LNG export projects have been
opposed by US-based environmental groups
such as the Sierra Club on the grounds that they
increase hydraulic fracturing in gas production.
Back to
contents
While the Federal Energy Regulatory Commission (FERC) approved construction permits
for Sabine Pass and the four other brownfield
projects in the Gulf, the Brownsville projects
have received more mixed feedback from the
local residents who have commented directly
to FERC - part of the public scoping process.
Those in support foresee economic development in the Rio Grande Valley while others
want to protect the tourism industry and
keep wildlife and natural areas preserved,
particularly around Port Isabel and South
Padre Island.
The Brownsville projects have all sought
for approval to export to non-free trade
agreement (non-FTA) nations, which include
key importers such as Japan, China and India.
The DOE has determined that LNG export
project applications for non-FTA licences will
not be granted until a project receives its
FERC permitting first.
FERC permitting typically can take
anywhere from 18 months to more than two
years and is considered a more accurate barometer of a projects stamina and committed
investment, considering the time, expertise
and capital required to develop front-end engineering and design (FEED) for the projects
to be approved by FERC.
Of the Brownsville projects, only Annova
LNG, Texas LNG and Rio Grande LNG have
started the FERC process. Both Annova LNG
and Texas LNG were eyeing potential final
investment in 2017. But this is expected to
slip back.
With more than 60mtpa in long-term
contracts already in place with the forerunner
export projects, further sales and purchase
agreements with long-term buyers in the
US have been difficult to sign given the size
and scope of some of the prospective buyers.
ruth.liao@icis.com
Heren Global
LNG Markets
110 High Holborn,

London WC1V 6EU, UK
Website: www.icis.com/energy
Email: energyinfo@icis.com
ICIS Customer Support
+65 6588 3955 (Asia & Middle East)
+44 20 8652 3335 (Europe & Africa)
+1 888 525 3255 (toll free US & Canada)
or +1 713 525 2613 (Americas)
csc@icis.com
ICIS Compliance and Methodology
www.icis.com/compliance
Editor, GLM
Edward Cox

Head of Gas
Ben Wetherall

+44 20 7911 1772

ed.cox@icis.com
+44 20 7911 1786

ben.wetherall@icis.com
Director, Global Energy Markets

Louise Boddy
+44 20 7911 1948
louise.boddy@icis.com

Editorial Director, Operations
Stephen Burns
+1 713 525 2611
stephen.burns@icis.com

Vice President of Sales

Douglas Strien
+44 20 7911 1919
energysales@icis.com
Head of Sales
Product Director
Simon Platt

Richard Haddrell
+44 20 7911 1957
simon.platt@icis.com
Senior Marketing Manager

Kirsty Fleck
+44 20 8652 8377

kirsty.fleck@icis.com
Head of Design and Production

Alexis Rendell
Global Production Editor
Louise Murrell
+44 20 8652 8139
louise.murrell@icis.com

Global Chief Copy Editor
Lewis Harper
+44 20 8652 4958
lewis.harper@icis.com

Publisher
Christopher Flook, Managing Director, ICIS
Global LNG Markets is published weekly by ICIS, 110 High Holborn, London WC1V 6EU, United Kingdom. ICIS accepts no liability for commercial decisions based on the content of this report. Unauthorised reproduction, onward transmission or
copying of Global LNG Markets in either its electronic or hard copy format is illegal. Should you require a licence or additional copies, please email us at energysales@icis.com.
ISSN 1747-8499. 2015 ICIS
19
News
Discover ICIS LNG Edge
Back to
contents
Gain a competitive edge in trading LNG
Real-time fleet, cargo and pricing information,

integrated in a single platform:
Global view on LNG - spot, laden, ballast
LNG spot prices displayed per port
Interactive tender information on map
Live, downloadable import-export volume data
Vessels position, destination and charterer
Updates on abrupt course changes and ETAs
LNG Edge is a dedicated LNG trading
analytics and tracking platform - accessible
online.
Charter availability and rates

Vessels search functionality by port,
status and compatibility
It is powered by the combination of ICIS

LNG market intelligence, state of the art
tracking and predictive technology, with
vessel positioning feeds supported by the
worlds two biggest constellation satellite
providers.
Plant outages, causes and potential

supply-demand imbalances
These unique resources set LNG Edge

apart from the rest, delivering unmatched
transparency and actionable intelligence
to its subscribers.
Real-time LNG news feed
Companys ranking, charters, trades and

plant ownership
Customisable reports and dashboard
With the right tools and information,

its easy to stay ahead...
Whether you are a trader, analyst or shipping manager,

LNG Edge will help you achieve efficiency in your trading functions.
Book a demo now with our sales team

www.icis.com/LNG-Edge-demo
enquiry@icis.com
20

Global LNG Markets 2015

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GLM 11.35 | 10 September 2015 | Published by ICIS | www.icis.

Low prices have helped entice KOGAS back

Indian imports in 22% monthly fall

GNLS negotiating withdrawal

Prices & Data

Shipping costs and netback values

SPOT des prices

FORWARD GAS MARKETS:

6.365 -0.032 7.982 -1.648

Nov '15 6.682

6.762 -0.080 9.374 -2.692

Dec '15 6.881

6.941 -0.060 9.922 -3.041

Singapores Pavilion Energy

7.024 -0.092 10.111 -3.179

7.054 -0.094 10.147 -3.187

Mar '16 6.784

6.850 -0.066 9.844 -3.060

Singapores state-backed Pavilion Energy

FORWARD GAS MARKETS:

Nov '15 2.736

Mar '16 2.978

contract gas markets:

NW Europe Oil Indexed

GLM 11.35 | 10 September 2015 | www.icis.com/energy

OJO Images/rex features

KOGAS is back but LNG length persists

The purchase of a spot free on board (FOB)

made in the low-$7.00s/MMBtu FOB from

KOGAS buys prompt Bontang cargo

GLM 11.35 | 10 September 2015 | www.icis.com/energy

ond half of September, having said to have

Pockets of Asian demand

While the KOGAS purchase was largely

Indian subsidies to support demand

came hot on the heels of a five-cargo award

Nigerias prompt FOB tender

GLM 11.35 | 10 September 2015 | www.icis.com/energy

Spot Netback Indications

PRODUCING REGIONS TFDE NETBACKS

TFDE SHIPPING COSTS FOR October 2015

TFDE NETBACK VALUES FOR October 2015

GLM 11.35 | 10 September 2015 | www.icis.com/energy

Week on week diff Data used

Week on week diff

NBP vs HENRY HUB: OCTOBER '15 CONTRACT

SOURCE: ICIS, NYMEX

Settlement front-month Henry Hub

Weighted average LNG import price

Billions of cubic feet

HENRY HUB vs LNG PRICES 2014/2015

Continued from page 3

SOURCE: NYMEX/US Dept of Energy

EAST ASIA LNG VS NBP FRONT-MONTH HISTORIC CLOSES

Bunkers: spot delivered prices

GLM 11.35 | 10 September 2015 | www.icis.com/energy

Latest Global LNG Tenders 10 September 2015

Pakistan State Oil

Pakistan State Oil

No. of Delivery/Lifting Delivery/Lifting

Pakistan State Oil

Point Fortin LNG

Point Fortin LNG

Israel Electric Corp

Shipping costs and netback values