Latest price snapshot $/mn Btu

Copyright 2014 Argus Media Ltd

Argus LNG Daily
Issue 14-103 Wednesday 28 May 2014
PRICES
Daily LNG prices, news and analysis
Argus Asia-Pacifc des spot LNG $/mn Btu
Delivery Bid Offer Midpoint
Northeast Asia (ANEA) 1H Jul 12.96 13.57 13.265 -0.085
2H Jul 12.96 13.57 13.265 -0.085
1H Aug 13.02 13.61 13.315 -0.095
China 1H Jul 12.98 13.55 13.265 -0.085
2H Jul 12.98 13.55 13.265 -0.085
1H Aug 13.00 13.63 13.315 -0.095
India 1H Jul 12.63 13.04 12.835 -0.100
2H Jul 12.63 13.04 12.835 -0.100
1H Aug 12.63 13.04 12.835 -0.100
Argus fob spot LNG $/mn Btu
Loading Bid Offer Midpoint
Iberian peninsula reload 2H Jun 11.22 12.55 11.885 +0.010
1H Jul 11.30 12.57 11.935 -0.015
West Africa (AWAF) 2H Jun 11.27 12.60 11.935 +0.010
1H Jul 11.37 12.65 12.010 -0.015
Trinidad and Tobago 2H Jun 11.37 12.68 12.025 0.000
1H Jul 11.38 12.68 12.030 +0.005
European des prices
NW Europe des (2H Jun): 9.815
Iberian peninsula des (2H Jun): 11.635
Iberian peninsula reload (2H Jun): 11.885
Italy des (2H Jun): 10.435
Greece des (2H Jun): 11.200
Turkey des (2H Jun): 11.700
Middle East fob
To Europe: 9.72
To Asia: 12.10
Asia des prices
Northeast Asia (ANEA) (1H Jul): 13.265
Southeast Asia (ASEA) (1H Jul): 12.880
China des (1H Jul): 13.265
India des (1H Jul): 12.835
West Africa (AWAF) price
(2H Jun): 11.935
Trinidad and Tobago fob
(2H Jun): 12.025
Australia fob
12.45
Argus Latin America des spot LNG $/mn Btu
Delivery Price
Argentina Prompt 12.95 -0.01
Brazil Prompt 12.74 -0.01
Chile Prompt 13.48 0.00
Mexico Gulf coast Prompt 13.24 0.00
Mexico Pacifc coast Prompt 12.50 -0.05
Angola LNG off line until mid-2015
The 5.2mn t/yr Soyo LNG export facility in Angola is expect-
ed to be off line until mid-2015, operator Angola LNG said.
The prolonged outage is necessary to enable contractor
US engineering company Bechtel to carry out repairs on
the plant following an incident on 10 April. The plant was
taken off line after a pipe connection failure associated
with the fare system caused a hydrocarbon release.
Works will also address capacity issues at the plant,
Angola LNG said. Prior to the incident the facility had
operated at reduced capacity, producing fve cargoes so far
in 2014. The plant could produce over 87 standard-sized
cargoes each year if it operated at full capacity.
The plant will remain shut down until mid-2015, and
will not produce either LNG or LPG. Gas produced in as-
sociation with crude production will either be fared or
re-injected into wells.
Whether the plant will reach full operational capacity
in 2015 is subject to the results of tests conducted after
the restart, Angola LNG said.
The outage had been expected to be shorter, after
minority shareholder BP said in late April that the plant was
expected to be off line for a couple of quarters. But the lat-
est announcement on the length of the outage follows addi-
tional investigations into the cause of the 10 April incident.
Even before the incident, the facility was not expected
to operate at full capacity in 2014. Lead shareholder Chev-
MArkET CoMMENTAry
Copyright 2014 Argus Media Ltd
Issue 14-103 Wednesday 28 May 2014 Argus LNG Daily
Page 2 of 11
Argus Northeast Asia swaps $/mn Btu
Delivery Price
Aug 13.40 0.00
Sep 13.65 0.00
Oct 14.38 0.00
Key netbacks $/mn Btu
Delivery Price
Southeast Asia (ASEA) 1H Jul 12.88 -0.09
2H Jul 12.88 -0.09
1H Aug 12.92 -0.10
Australia fob Prompt 12.45 -0.08
Middle East fob (Asia-Pacifc bound) Prompt 12.10 -0.08
Middle East fob (Europe-bound) Prompt 9.72 -0.03
Benchmark price snapshot
Market Delivery Price
Natural gas $/mn Btu
Nymex Jun 4.60
NBP Jun 6.94
Zeebrugge Jun 7.55
Peg Nord Jun 7.74
PSV Jun 8.28
Crude $/bl
WTI Jul 103.38
Brent Jul 109.87
JCC* Feb 110.92
*Japanese Cocktail Crude
Argus Victoria Index (AVX) - Friday 23 May 2014
Delivery Units Bid Offer Midpoint
June A$/GJ 4.06 4.38 4.220 0.000
June $/mn Btu 3.95 4.27 4.107 -0.059
The AVX index, the frst month-ahead index for Australias east coast Victorian
natural gas market, is assessed each Friday and reproduced through the week. The
date shown is the date of the assessment. The index will also appear in the east
coast Australian markets page each Friday
Argus European des spot LNG $/mn Btu
Delivery Bid Offer Midpoint
NW Europe 2H Jun 7.23 12.40 9.815 -0.135
1H Jul 7.60 12.40 10.000 -0.025
Iberian peninsula 2H Jun 10.77 12.50 11.635 -0.015
1H Jul 10.77 12.50 11.635 -0.015
Italy 2H Jun 8.47 12.40 10.435 +0.035
1H Jul 8.53 12.40 10.465 +0.065
Greece 2H Jun 10.00 12.40 11.200 0.000
1H Jul 10.00 12.40 11.200 0.000
Turkey 2H Jun 11.00 12.40 11.700 0.000
1H Jul 11.00 12.40 11.700 0.000
ron said in February that the plant would run at half of
its full capacity for the rest of this year and not reach full
capacity until early 2015.
The outage has had a limited impact on the Argus West
Africa fob (AWAF) price for the front half-month, which
has lost over $1.50/mn Btu since 10 April. Ample supply
and limited demand has weighed on LNG prices in both the
Pacifc and Atlantic basins in recent weeks, despite the halt
of production at Angola LNG.
Bechtel has described its work on the construction of
the LNG train at Soyo and port expansion work as one of its
"most challenging recent projects" because of the plant's
remote location and limited infrastructure. It was awarded
a four-year contract for the construction of the 5.2mn t/yr
train, tanks and supporting facilities in 2007.
Angola LNG is a joint venture between Chevron, which
own 36.4pc, Angolan state-owned Sonangol with 22.8pc
and BP, Total and Italy's Eni, each holding 13.6pc.
July-August spread narrows in Asia-Pacifc
Northeast Asian spot prices continued to fall today on increased
supply availability and weak demand. August prices came
under particular pressure, narrowing the contango to July.
August spot prices are now seen at a 5/mn Btu contango
to July, down from 15/mn Btu on 23 May. Some market
participants had earlier anticipated a possible 20-30/mn
Btu contango for August to July, mainly on expectations of
increased gas demand in the summer. Spot suppliers early
last week indicatively offered some August cargoes in the
low-$14s/mn Btu, at a premium to the high-$13/mn Btu level
for July volumes.
But fresh August supplies from Australias 16.3mn t/yr
North West Shelf (NWS) LNG plant, the start-up of the 6.9mn
t/yr Papua New Guinea (PNG) LNG facilitys second liquefac-
tion train and continued expectations of a mild summer have
depressed August prices and capped the contango to July.
NWS Australia LNG has issued a tender for one or more
des or fob cargoes for late-July and late-August deliveries.
The tender closes on 9 June, with bids to remain valid until
13 June. The tender is likely to draw limited interest from
consumers in Asia-Pacifc, many of which have high invento-
ries. The cargoes are expected to be awarded to portfolio
suppliers or trading frms, which could be seeking volumes
for optimisation or to cover short positions. Shareholders of
the NWS plant may also be inclined to bid for the cargoes at
higher levels to support market prices. BP, Shell, Chevron,
Australias Woodside and BHP Billiton and Japanese trading
houses Mitsui and Mitsubishi have equity stakes in NWS.
NWS possibly sold two June-delivery cargoes to portfolio
suppliers in its last spot tender issued at the end of April
MArkET CoMMENTAry
Copyright 2014 Argus Media Ltd
Issue 14-103 Wednesday 28 May 2014 Argus LNG Daily
Page 3 of 11
Global supply highlights
Supply Loading period First reported Last updated Comments
Up to 10 cargoes/month from PNG From Jul/Aug 28 May 28 May
Plant expected to reach full capacity by
end-June
8 reloads from Spain scheduled May 31 Mar 27 May All full size. Three to load in next few days
Unspecifed number of cargoes from
Bintulu
May through Sep 24 Apr 27 May All cargoes heard sold
6 reloads from Spain scheduled Jul 27 May 27 May All full size
5 reloads from Spain scheduled June 01 May 27 May All full size.
Unspecifed number of cargoes from NWS 17-19 Jul; 16-21 Aug 27 May 27 May
Fob or des; 28-30 Jul and 27 Aug-1 Sep deliv-
ery in NE Asia
Up to 6 Nigerian cargoes offer by Galp Oct 2015 for up to fve years 01 Apr 21 May
At least 4-6 cargoes awarded on fob basis,
likely not for fve years
1 re-export from France Late May/early June 14 May 21 May Likely sold to Brazil
2 Nigerian cargoes June - August 09 May 20 May
1 June cargo may have been sold, 1 August
may still be available
Up to 6 a month from PNG LNG From June 06 May 06 May Commissioning cargo to be shipped mid-year
1-2 cargoes from Pluto LNG June delivery 04 Apr 02 May Cargoes heard to have been sold
Up to 20 cargoes from Bontang LNG 2H 2014 02 May 02 May
Pertamina and SKK Migas marketing the
cargoes
Atlantic fob prices lack support
Atlantic fob prices were relatively fat on Wednesday, as they
lacked support amid weak demand expectations in both basins.
There was limited buying interest in the Atlantic basin.
Although Brazils Petrobras was said to be making tentative
bids for fob cargoes, it was not expected to have urgent
demand. Dubai may have secured some of the three cargoes
it was seeking for delivery between June and August.
And demand in the Pacifc basin was also limited. North-
east Asian buyers have ample LNG in stock. South Koreas Ko-
gas is facing excess supply, and is seeking to reduce or defer
its long-term deliveries. And any spot demand in the Pacifc is
likely to be absorbed by supply from liquefaction projects in
and awarded in early May.
PNG LNGs second 3.45mn t/yr production train has started
operations and the plant could reach full capacity by the end
of June, instead of end-2014 as originally planned. PNG LNG
can produce up to 10 cargoes a month when operating at full
capacity. These potential supplies are also exerting downward
pressure on forward prices for August and further out.
Around seven or possibly more July cargoes are available
from Asia-Pacifc projects such as Indonesias 22.6mn t/yr
Bontang and Australias 4.3mn t/yr Pluto plants, as well as
NWS and PNG LNG.
Indicative July offers range from slightly under the mid-
$13s/mn Btu to the high-$13s/mn Btu. Sellers of Asia-Pacifc
cargoes are possibly offering below the mid-$13/mn Btu
level, while those with Atlantic basin cargoes are offering
in the high-$13s/mn Btu. But weak Asia-Pacifc prices are
closing the Atlantic-Pacifc arbitrage, with Atlantic offers
remaining supported by tentative South American demand.
Japans meteorological agency continues to predict mild
summer weather because of an expected El Nino weather
phenomenon. Such forecasts are behind weak and opportu-
nistic July and August demand. Demand for these months is
limited to northeast Asian buyers with tank space that are
looking for opportunistic purchases or portfolio suppliers
looking to cover short positions, although there could be
more August purchases on warmer weather. Most indicative
July and August bids are in the high-$12s/mn Btu.
The ANEA price, the Argus assessment for northeast Asia
des, is down by 8.5/mn Btu at $13.265/mn Btu for frst- and
second-half July and down by 9.5/mn Btu at $13.315/mn
Btu for frst-half August deliveries. Chinas des prices are as-
sessed in line with the ANEA.
Indian spot prices also fell, tracking losses in the north-
east Asian market. July and August deals are expected to
be done below $13/mn Btu, as price-sensitive importers cut
buying ideas in response to softening bids in northeast Asia.
Indicative July bids are around the mid-$12s/mn Btu,
while offers for mostly Middle Eastern cargoes are tenta-
tively in the low-$13s/mn Btu.
Only one state-controlled importer is seeking a July
cargo. Other buyers remain on the sidelines, possibly be-
cause their requirements have been fulflled by short-term
or strip deals, as a result of a lack of available berthing slots
at receiving terminals for spot cargoes, and on expectations
prices could fall further.
Indias des prices are assessed down by 10/mn Btu
across the board at $12.835/mn Btu for frst- and second-half
July and frst-half August deliveries.
Copyright 2014 Argus Media Ltd
Issue 14-103 Wednesday 28 May 2014 Argus LNG Daily
Page 4 of 11
Global demand highlights
Demand Delivery period First reported Last updated Comments
3-5 cargoes from Japanese utilties May 07 Mar 28 May May requirements fulflled
Around 3 cargoes from Dubai June - August 09 May 28 May
One cargo a month Jun-Aug. Some may have
been awarded
Short-term tender from Egas For 2 years from end 2014 22 May 22 May
Tender to be issued in June. In addition to
12 cargoes negotiated
1 cargo by India's GSPC July 20 May 20 May For 7-15 July delivery
2 cargoes by PTT June 06 May 19 May
Two tenders issued. For 13-25 June and 22-
28 June delivery
6 from Argentina's YPF June - August 02 May 14 May
3 to Bahia Blanca awarded to Excelerate,
Gazprom, and Vitol; 1 to Escobar for Vitol
2 cargoes from Chile 1 June, 1 July 29 Apr 09 May June cargo bought - July cargo still sought
1 cargo by PTT May 01 Apr 06 May
2 bought, one from producer, one from
portfolio player
3-6 cargoes from Japanese utilities June 24 Mar 15 Apr
Around 50-70pc of requirements possibly
fulflled
438,000 t/yr from India's NTPC For 10-12 yrs from 4Q 2014 19 Mar 15 Apr
Bid deadline extended to 7 May. For deliv-
ery to Kochi terminal
1 cargo from a US importer By end of June 28 Mar 02 Apr
For operational purposes. May have been
awarded to a major
2 cargoes from India By end of May 02 Apr 02 Apr
A state-owned buyer and a private importer
seeking one each
West Africa (AWAF) LNG fob $/mn Btu

11.5
12.0
12.5
13.0
13.5
14.0
10 Apr 14 28 Apr 14 13 May 14 28 May 14
that basin, which could be more competitively priced because
of lower shipping costs than from the Atlantic basin.
Supply from the Atlantic basin may be priced less com-
petitively than from other sources. Cargoes from the recent
tender issued by Argentinas YPF which were awarded to
Excelerate, Vitol, and Gazprom are likely to be supplied
from Qatar, a source involved in the deal said.
But offers for Atlantic basin cargoes remained high. Sell-
ers opted to keep volumes in storage rather than offer them
at lower levels on the spot market. The cost of holding LNG
in storage in Spanish terminals could be contained, as the
boil-off could be sold to the Spanish domestic gas market.
The Spanish AOC gas hub was last week said to trade at
about $10.90/mn Btu for June delivery.
But there is limited storage capacity available at Span-
ish terminals. The 8.6mn t/yr Huelva and 8.4mn t/yr Sagunto
terminals, for example, are both expected to reach maximum
storage capacity of around 600,000m in July. Capacity holders
may need to lower offers in order to increase storage availabil-
ity, depending on the fexibility of long-term contracts.
The outage at the 5.2mn t/yr Soyo liquefaction terminal
has done little to reverse the decline to the Argus West Africa
fob (AWAF) price. News that the facility would be off line until
mid-2015 did not change the short-term supply outlook, as the
facility had been expected to be off line for several months
at least. But tighter supply from West Africa could support
Atlantic fob prices during periods of strong demand.
The Greek and Turkish gas markets were well-supplied,
with limited LNG demand. Despite maintenance on the West-
ern pipeline which imports gas from Russia, customers have
been able to buy alternative supply including from Azerbai-
jan. The maintenance was scheduled at least six months ago,
giving gas consumers plenty of time to fnd alternatives. The
maintenance is schedule for the whole of June.
Turkey would most likely not be interested in paying
more than $11/mn Btu for spot cargoes due to ample pipe-
line and long-term LNG supplies. Greece also has limited de-
mand for spot volumes, unless offers are below prices under
long-term contracts, subject to contract fexibility.
Argus spot LNG freight $/day
Price
Freight west of Suez 54,000 +2,000
Freight east of Suez 48,500 -500
Copyright 2014 Argus Media Ltd
Issue 14-103 Wednesday 28 May 2014 Argus LNG Daily
Page 5 of 11
Middle East bunker fuel - Fujairah $/t

570
580
590
600
610
620
630
640
17 Feb 14 20 Mar 14 23 Apr 14 28 May 14
380cst 180cst
Asia Pacifc bunker fuel $/t

550
575
600
625
650
675
17 Feb 14 20 Mar 14 23 Apr 14 28 May 14
380cst Sing 180cst Sing 380cst SKorea
180cst SKorea
European bunker fuel - Rotterdam $/t

550
575
600
625
650
675
700
14 Feb 14 19 Mar 14 23 Apr 14 28 May 14
180cst 380cst 1.5% 180cst 1.5% 380cst
Global shipping highlights
Vessel Capacity m From To Loading Arrival Notes
Valencia Knutsen 173,400 Point Fortin, Trinidad Mina Al-Ahmadi, Kuwait 02 May 27 May Shell vessel
Arctic Spirit 89,880 Point Fortin, Trinidad Escobar, Argentina 16 May 28 May
Castillo de Villalba 138,000 Bonny, Nigeria Dahej, India 29 Apr 28 May
Lena River 155,000 Sagunto, Spain Bahia Blanca, Argentina 05 May 29 May Re-export
Gaslog Seattle 155,000 Bonny, Nigeria South Korea 23 Apr 30 May
Gaslog Skagen 155,000 Sagunto, Spain Asia-Pacifc 09 May 31 May Re-export
Madrid Spirit 138,000 Point Fortin, Trinidad Bilbao, Spain 18 May 01 Jun
LNG River Niger 141,000 Bonny, Nigeria South Korea 06 May 02 Jun
Cool Runner 160,000 Huelva, Spain Mina Al-Ahmadi, Kuwait 20 May 03 Jun Re-export
Polar Spirit 87,300 Point Fortin, Trinidad Escobar, Argentina 13 May 03 Jun
Spirit of Hela 177,000 Papua New Guinea Futtsu, Japan 24 May 03 Jun First PNG cargo
Wilenergy 125,000 Huelva, Spain Nagoya, Japan 05 May 03 Jun Re-export - for orders?
Seri Balhaf 152,300 Bonny, Nigeria Pyeongtaek, S Korea 13 May 07 Jun
LNG Libra 126,400 Point Fortin, Trinidad Escobar, Argentina 28 May 09 Jun
LNG Ondo 148,300 Bonny, Nigeria Guangdong, China 16 May 10 Jun
Wilforce 155,900 Zeebrugge, Belgium South America 27 May 10 Jun Re-export
Seri Bijaksana 152,300 Arzew, Algeria Oita, Japan 12 May 11 Jun
LNG Oyo 140,500 Bonny, Nigeria Chita, Japan 15 May 12 Jun
Gemmata 138,100 Fos Cavaou, France Brazil 20 May 15 Jun
LNG Borno 149,600 Bonny, Nigeria Futtsu, Japan 18 May 17 Jun
Magellan Spirit 165,000 Bonny, Nigeria Senboku, Japan 16 May 18 Jun
Golar Arctic 140,600 Bonny, Nigeria Tokyo, Japan 22 May 24 Jun
Sestao Knutsen 138,100 Point Fortin, Trinidad Mina Al-Ahmadi, Kuwait 24 May 27 Jun
Freight $/d

48,000
50,000
52,000
54,000
56,000
58,000
4 Apr 14 23 Apr 14 9 May 14 28 May 14
East Suez West Suez
Copyright 2014 Argus Media Ltd
Issue 14-103 Wednesday 28 May 2014 Argus LNG Daily
Page 6 of 11
NEws
Eon signs three-year LNG deal with rasgas
German utility Eon has signed a three-year deal with Qatars
Rasgas to deliver LNG to the UKs Isle of Grain terminal.
The fexible deal is for up to around 2bn m of gas
(1.45mn t of LNG) over a three-year term and is effective
immediately.
Eon said the "LNG is destination-fexible" but declined to
comment on whether the LNG price is linked to the UK's NBP
or oil.
Eon has around 7bn m/yr of regasifcation capacity in
the UK, the Netherlands, and Spain as well as a stake in
Italy's Offshore LNG Toscana terminal.
In October last year, fellow state-run LNG producer
Qatargas signed a fve-year supply deal with Eon to deliver
1.5mn t/yr to the Netherlands' Gate terminal from 2014. Eon
said at the time that the LNG price would be linked to a con-
tinental gas hub basis, but declined to comment on whether
the LNG would be divertible.
Qatargas also signed a supply deal with Malaysia's Petro-
nas in 2013 to deliver LNG to the UK Dragon facility. That
supply was divertible, subject to timings and fees.
UK energy system operator National Grid said earlier
this month that the Isle of Grain LNG import terminal near
London was under-utilised last fnancial year, as a result of
high global LNG prices in other regions.
The Grain LNG import terminal received 17 cargoes in
the fnancial year 2013-14 ending on 31 March, compared
with 22 during the previous year. The UK as a whole re-
ceived 71 cargoes, down from 84 in fnancial year 2012-13.
The UK's other import terminals are the 15.6mn t/yr
South Hook LNG terminal and the 4.4mn t/yr Dragon LNG
import terminal, both in southwest Wales.
Qatargas to supply eight LNG cargoes to kuwait
Qatargas will supply eight LNG cargoes to Kuwait through
the country's Mina al-Ahmadi foating storage and regasifca-
tion unit (FSRU) this year.
The cargoes will be sourced from Qatargas' 7.8mn t/yr
train four facility and delivered on Q-fex vessels. A Q-fex
tanker has 210,000-217,000m of capacity. Train four is 70pc
owned by Qatari state-owned QP and 30pc by ExxonMobil.
Kuwaiti state-owned KNPC has also signed supply deals
with Shell and BP this year, and the three suppliers are
expected to deliver around 2.5mn t/yr of LNG for up to the
next six years.
Kuwait imported a Qatari LNG cargo aboard the
216,200m Al Gattara in April. KNPC has also chartered the
170,000m newly built Golar Igloo FSRU to operate as an
import facility at Mina al-Ahmadi for nine months of the year
to supply Kuwait during the summer months.
Challenging year for LNG shipowners: Awilco
The short-term market for LNG shipping looks weak because
of the scheduled arrival of newly-built vessels and limited
new demand, according to ship owner Awilco.
The Norwegian shipping frm expects sparse trading
activity and low charter rates to continue throughout the
second quarter and summer months of 2014. Older vessels
will be more affected than more recent tankers, with soft
charter rates expected to speed up the scrapping of old
vessels.
Planned maintenance in the second quarter is reducing
LNG production, but the lack of demand is limiting trades
and pressuring charter rates for LNG tankers. In addition, the
early start-up of the 6.9mn t/yr PNG export facility in Papua
New Guinea, which saw at least four vessels chartered for the
project, has been offset by the unexpected shutdown of the
5.2mn t/yr Angola LNG liquefaction terminal. Operator Angola
Netbacks $/mn Btu (front half month)
India China Japan
South
Korea
Taiwan
Iberian
peninsula
Greece Italy Turkey
Nw
Europe
North-
east US
Us Gulf
Middle East 12.57 12.01 11.86 11.93 12.13 10.26 10.13 9.24 10.62 8.33 3.76 2.72
Australia 12.03 12.56 12.47 12.49 12.69 9.52 9.38 8.60 9.86 7.71 3.23 2.22
Nigeria 11.32 11.10 10.96 11.02 11.22 10.87 10.19 9.51 10.65 8.97 4.57 3.60
Norway 10.94 10.48 10.33 10.40 10.60 11.10 10.35 9.66 10.80 9.46 4.87 3.76
Algeria 11.52 11.05 10.90 10.97 11.17 11.47 11.01 10.22 11.48 9.55 4.86 3.79
Trinidad and Tobago 10.60 10.47 10.33 10.40 10.60 10.86 10.16 9.47 10.61 9.01 5.09 4.25
Russia 11.56 12.93 12.99 13.00 12.88 9.02 8.92 8.14 9.40 7.26 3.11 2.10
Latest estimated LNG distribution by destination m
Asia-Pacifc 13,925,227
Europe 3,593,907
North America 303,248
South America 1,241,490
Upstream 19,638,493
Based on vessels at sea, fnal destination and estimated arrival time. Upstream
fgure includes all major production regions.
Copyright 2014 Argus Media Ltd
Issue 14-103 Wednesday 28 May 2014 Argus LNG Daily
Page 7 of 11
LNG has offered its project vessels to the spot market.
Awilco expects 32 new LNG tankers to be delivered to
the market in 2014, of which 13 are currently uncommitted.
Next year, the company sees 27 deliveries, four of which are
uncommitted.
The company also estimates that charter rates fell
to around $64,000/d by the end of the frst quarter from
$98,000/d at the start of January, a decline of 34.7pc.
Argus assessed freight rates west of Suez fell to
$55,000/d from $97,000/d across the frst quarter, a de-
cline of 43.3pc. East of Suez rates fell to $56,000/d from
$88,000/d, a decrease of 34.3pc.
Awilco owns fve LNG tankers: the 160,000m Wilforce
and the 156,000m Wilpride, both tri-fuel diesel electric
vessels; and the second-generation steam turbine tankers
Wilgas, Wilenergy and Wilpower, all of which are 125,000m.
The Wilforce was chartered by an oil and gas major in
January for three years, with a possible one-year extension.
The Wilpride, a new vessel delivered in November 2013, is
trading on the spot market, and is available from mid-July
2014.
The Wilgas is chartered to Brazilian oil and gas company
Petrobras until the fourth quarter of 2014, and the Wile-
nergy is on charter until the end of the third quarter. The
Wilpower is currently offshore Singapore in lay-up and is not
operational. It is being marketed for project work.
Awilco reports vessel utilisation of 95pc in the frst quar-
ter, compared with 90pc in the fourth quarter of 2013.
second June cargo planned for Zeebrugge
Zeebrugge has scheduled its second LNG delivery for next
month, which is expected to arrive on the 145,500m Milaha
Qatar on 15 June with a Qatari cargo.
The tanker is expected 12 days after the 145,800m Al
Jassasiya is scheduled to arrive on 3 June with a similarly-
sourced cargo.
Zeebrugge's June schedule broadly maintains the aver-
age arrival interval of one cargo every 11 days established
this year and last. The regular deliveries to Zeebrugge are
in sharp contrast to the UK, where LNG imports from Qatar
have quickened considerably since the start of the year,
amid weak shoulder season demand in northeastern Asia.
The UK's quick LNG receipts have increased sendout at
South Hook, and Belgium's imports through the intercon-
nector have risen in turn and prompt prices at the NBP and
Zeebrugge have sunk to a discount to the rest of Europe in
recent weeks.
Fos Cavaou to receive fourth May LNG cargo
Fos Cavaou will receive an Algerian cargo aboard the
138,000m Berge Arzew on 30 May.
The cargo will be the fourth to berth at Marseille's larger
LNG terminal, where the berthing schedule was revised
down from fve to four delivery slots earlier this month.
The arrival of the Berge Arzew would lift LNG receipts at
Fos Cavaou to around 556,000m in May to judge by tanker
size, compared with the 542,500m unloaded last May. But
this year a re-export cargo of around 110,000m was loaded
for export to Brazil, bringing Fos Cavaou's net May receipts
to around 446,000m well below last year's receipts, when
no re-exports were loaded in May.
Yesterday morning LNG inventories at Fos Cavaou were
around 89,000m, enough to sustain recent sendout rates of
91 GWh/d for six more days. Nominated sendout until 30 May
is at the same rate, suggesting that stocks will fall as low as
30,500m before the arrival of the Berge Arzew.
russian Novatek eyes gas trading assets
Russia's biggest independent gas producer, Novatek, is interest-
ed in buying assets related to gas trading in Europe, the frm's
chairman and co-owner Leonid Mikhelson said yesterday.
"Novatek is looking for a broader range of assets related
to gas trading in the EU, not necessarily another gas trader,"
the company said.
This could involve buying a share in an EU gas trading
hub, a trading platform or a share in gas storage in the EU.
Buying storage capacity could increase the frm's fexibility
to trade around short-term movements in the European gas
market.
Novatek has already established a gas trading subsidiary
in the EU, Novatek Gas and Power. It has been buying gas
on the spot market to resell to German utility EnBW since
October 2012. But the 1.9bn m/yr deal, valid for 10 years, is
of limited proftability to Novatek.
Novatek is likely to be able to trade its own gas in the EU
once its Yamal LNG project produces frst LNG late in 2017.
Yamal LNG is expected to be producing at least 16.5mn t/yr
by the end of 2019.
NBP $/mn Btu
Delivery Bid Offer Midpoint
Day-ahead 7.23 7.26 7.244 -0.137
Jun 6.94 6.95 6.946 -0.240
Jul 7.47 7.49 7.479 -0.142
Aug 7.78 7.81 7.794 -0.097
3Q14 7.73 7.76 7.748 -0.110
4Q14 9.71 9.74 9.727 -0.087
1Q15 10.54 10.58 10.559 -0.100
Winter 2014-15 10.13 10.16 10.144 -0.093
Summer 2015 9.33 9.35 9.342 -0.047
Winter 2015-16 10.65 10.68 10.664 -0.066
2015 9.89 9.92 9.906 -0.064
2016 10.05 10.08 10.062 -0.074
2017 10.05 10.09 10.071 -0.082
Copyright 2014 Argus Media Ltd
Issue 14-103 Wednesday 28 May 2014 Argus LNG Daily
Page 8 of 11
EU's Van rompuy renews calls for energy union
Following a meeting last night of EU leaders to discuss the
results of European elections, European Council president
Herman Van Rompuy called for an energy union and de-
creased energy dependency.
"There must also be a strong response to the climate
change challenge and a determined push towards an energy
union and also a push for lessening energy dependency," said
Van Rompuy.
But he gave no details on what an energy union would
look like. The concept came to the fore with the deterio-
ration of EU relations with Russia over Ukraine and fears
that the fow of Russian gas to some EU countries through
Ukraine could be disrupted if Moscow and Kiev fail to reach
agreement over payments for gas for Ukrainian consumption.
The idea has been championed by Polish Prime Minister
Donald Tusk. In addition to common gas purchasing, Tusk's
proposal includes strengthened solidarity mechanisms,
investment in energy infrastructure, particularly gas, better
use of own energy sources, and diversifcation including
importing LNG from the US.
Tusk concedes that EU leaders doubt the bloc could make
common gas purchases, despite generally supporting the
idea of an EU energy union.
Van Rompuy chaired a meeting yesterday evening of 28
EU heads of state and government. The meeting was called
to discuss who will take up the key position of European
Commission president from October 2014 and EU priorities
for the next fve years.
It remains unclear how the EU elections and new Com-
mission will affect the energy industry. Aside from expected
legislative measures for a 2030 climate and energy frame-
work, the energy sector will need to consider the effects of
new proposals including a fnancial transaction tax, revisions
to capital requirements and a benchmarks regulation.
A loss of seats in the European Parliament by the UK's
governing coalition parties may weaken the infuence on
legislation of UK-based fnancial industries and companies,
including those in the energy sector.
Iran outlines kish gas feld development plan
Iran expects to start producing 1bn ft/d (10.3bn m/yr) of
gas from its Kish gas feld by November 2015, state-owned
Pedec managing director Abdolreza Haji Hossainnejad said.
The Kish feld contains 50 trillion ft (1.4 trillion m) of
gas.
A drilling rig will be taken to the feld by the end of June
and a tender for constructing the processing unit will be is-
sued in two months, Hossainnejad said.
Iran previously planned to export 1bn ft/d of gas from
the Kish feld to Oman, but recently revived talks between
the two countries have focused on Iranian gas exports to
Oman being sourced from the South Pars gas feld instead.
Gas from the feld is expected to be connected to the
country's seventh trunk line (IGAT7). The cost of the project
is expected to be $2.2bn, which is expected to be fnanced
by a consortium of Iranian banks and investors.
LNG underpins Australian resource investment
Upstream oil and gas accounts for 86pc of the $229bn
($213bn) invested in resource projects under development
in Australia, the governments commodity forecaster the
Bureau of Resource and Energy Economics (Bree) said.
Most of this investment is being spent on the construc-
tion of seven LNG projects. Bree identifed A$197.04bn of
committed investment on 14 LNG, oil and gas projects. No
new LNG, oil or gas projects have been approved or com-
pleted in the six months to April, although there was a
A$2bn cost increase to the $54bn, 15.6mn t/yr Gorgon LNG
project offshore Western Australia operated by Chevron.
Four of the six onshore LNG projects at the committed
stage are scheduled to start production within the next two
years and will underpin a substantial decline in the number
of committed projects.
Three of the 14 upstream oil and gas projects at the
construction stage are investments in either existing LNG
projects or feld developments associated with LNG projects
under construction. The A$2.3bn Greater Western Flank gas
project is associated with extending the life of the 16.3mn
t/yr North West Shelf (NWS) LNG venture operated by Aus-
tralian independent Woodside Petroleum, Bree said.
The A$370mn development of the Xena gas feld is part
of the 4.3mn t/yr Pluto LNG project operated by Woodside,
while the A$1.2bn development of the Julimar gas feld by
US independent Apache and Kuwaiti state-controlled Kufpec
is part of Chevrons 8.9mn t/yr Wheatstone LNG project.
The inclusion of these three projects takes LNGs share
to A$194.97bn or 85pc of total resource investment.
LNG, gas and oil projects have the highest combined
value of projects at the publicly announced stage at
A$28.5bn-30.5bn. This has increased by around A$4bn as
a result of the Arrow LNG project that is jointly owned
by Shell and Chinese state-controlled PetroChina being
moved back from the feasibility stage and the addition of
Woodsides Persephone gas feld project, which is also part
of NWS LNG. These together more than offset the value
of three projects that have been removed from the major
projects list.
Woodsides Browse foating LNG (FLNG) project is one of
the largest that remains on the major projects list. There
are eight LNG, gas and oil projects at the feasibility stage
with a combined value of A$43bn.
FLNG projects account for the majority of the value of
LNG, oil and gas projects at the feasibility stage, with the
Scarborough and Bonaparte FLNG projects making up around
60pc of the value of projects at this stage.
Copyright 2014 Argus Media Ltd
Issue 14-103 Wednesday 28 May 2014 Argus LNG Daily
Page 9 of 11
Japan:Crude vs LNG $/mn Btu

13.0
14.0
15.0
16.0
17.0
18.0
19.0
20.0
25 Feb 14 25 Mar 14 24 Apr 14 28 May 14
ANEA front half month
Minas prompt inc freight
Dubai front month inc freight
Japan: Fuel oil vs LNG S/mn Btu

13.0
13.5
14.0
14.5
15.0
15.5
16.0
16.5
17.0
17.5
18.0
18.5
19.0
19.5
25 Feb 14 25 Mar 14 24 Apr 14 28 May 14
ANEA front half month
Fuel oil LSWR V-500 Indonesia inc freight
South Korea: Fuel oil, coal vs LNG $/mn Btu
13.0
14.0
15.0
16.0
17.0
18.0
19.0
20.0
25 Feb 14 25 Mar 14 24 Apr 14 28 May 14
3.40
3.45
3.50
3.55
3.60
3.65
ANEA front half month (LHS)
Fuel oil HS 180cst South Korea del (LHS)
Coal del Indonesia - South Korea 5,800 kcal (RHS)
India: Fuel oil, gasoil vs LNG $/mn Btu

12
14
16
18
20
22
24
25 Feb 14 25 Mar 14 24 Apr 14 28 May 14
Argus LNG India front half month
Fuel oil HS 180cst Mideast Gulf inc freight
Gasoil 0.05% Mideast Gulf inc freight
CoMPETING FUELs IN AsIA AND PowEr MArkET INDICATors
India: Coal vs LNG $/mn Btu
12.0
13.0
14.0
15.0
16.0
17.0
18.0
25 Feb 14 25 Mar 14 24 Apr 14 28 May 14
2.85
2.90
2.95
3.00
3.05
3.10
Argus India LNG front half month (LHS)
Coal del Indonesia - India 4,200 kcal (RHS)
India: Naptha vs LNG $/mn Btu

12
13
14
15
16
17
18
19
20
28 Feb 14 28 Mar 14 28 Apr 14 28 May 14
Argus India LNG front half month
Naphtha LR1 Mideast Gulf fob
Copyright 2014 Argus Media Ltd
Issue 14-103 Wednesday 28 May 2014 Argus LNG Daily
Page 10 of 11
China historic receipts mn m LNG

0
1
2
3
4
5
6
7
Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14
Spain historic receipts mn m LNG

0
1
2
3
4
Aug 11 Feb 12 Aug 12 Feb 13 Aug 13 Feb 14
South Korea historic receipts mn m LNG

0
2
4
6
8
10
12
Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14
Japan historic receipts mn m LNG

0
5
10
15
20
25
Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14
MoNThLy LNG IMPorT VoLUMEs
PowEr MArkET INDICATors: BrEAkEVEN GAs PrICEs For GENErATIoN
Latin America $/mn Btu

0
5
10
15
20
25
30
Jan 12 Jul 12 Jan 13 Jul 13 Jan 14
Brazil wholesale clearing price
Argentina MEM monthly average

6
7
8
9
10
11
12
9 Apr 14 25 Apr 14 12 May 14 27 May 14
Spain UK Turkey
Europe: Front month base load $/mn Btu
illuminating the markets
Natural gas/LNG
Issue 14-103 Wednesday 28 May 2014 Argus LNG Daily
registered offce
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USGC diesel vs LNG $/mn Btu

12
14
16
18
20
22
26 Feb 14 26 Mar 14 24 Apr 14 27 May 14
ANEA front half month USGC diesel
Atlantic benchmarks vs LNG S/mn Btu

0
5
10
15
20
25
2 Dec 13 29 Jan 14 26 Mar 14 27 May 14
ANEA front half month NBP front month
Nymex gas front month Ice Brent front month
US Nymex $/mn Btu

4.0
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
Jun 14 3Q 2014 1Q 2016 3Q 2017 1Q 2019
Ice brent front month $/bl

105
110
115
11 Apr 14 28 Apr 14 12 May 14 27 May 14