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Nigeria puts two LNG cargoes on offer

Nigeria Liquefied Natural Gas (NLNG) and Angola’s LNG project are offering three cargoes of lique­fied natural gas in the internation­al market in the midst of drop in the price of crude oil.

NLNG is offering two cargoes next month, Angola will offering one in June.

The average LNG price for June delivery into northeast Asia LNG-AS is estimated at around $1.95 per million British thermal units (mmBtu) about $0.35 per mmBtu lower than the estimate last week.

The LNG price drop has been attributed to sellers around the world flooded the market with car­go offers, while demand remained subdued amid coronavirus-related lockdowns.

A wave of supply tenders has hit the market as a number of buyers are rescheduling long-term deliv­eries, leaving suppliers with excess cargoes; an LNG trader was quoted as saying: “There’s some flexibility in long-term contracts. If the long-term buyer nominates (volumes) down, then the surplus cargoes are offered on the spot market,” anoth­er industry source said.

There were also tenders from usual sellers of spot cargoes, trad­ers said.

Source: Independent