LNG Daily: Asia LNG: Prices Rise On Early Concerns of Suez Canal Situation, Off-Peak Demand

LNG DAILY
Volume 18 / Issue 58 / March 24, 2021
Asia LNG: Prices rise on early concerns of

Suez Canal situation, off-peak demand JKM TM 6.924 +0.139
AAOVQ00 ▲
Cumulative monthly average (May) AAOVS00 6.670
Previous month average (Apr) AAOVS03 6.077
KEY DRIVERS / MARKET HIGHLIGHTS

■■APAC MOC: BP bids $6.90/MMBtu for May 10-14 DES JKTC
PLATTS DAILY LNG MARKERS ($/MMBtu)
■■Sakhalin LNG tender heard awarded $6.70-6.80/MMBtu Mar 24 Change
■■PSO, Novatek issue tenders for April-July deliveries DES Japan/Korea Marker (JKM)
■■Intraday volatility on TTF due to Suez, energy complex JKM (May) AAOVQ00 6.924 0.139 ▲
H2 Apr AAPSU00 6.950 0.125 ▲
■■Atlantic MOC: BP bids DES Krk, offers DES NWE
H1 May AAPSV00 6.919 0.147 ▲
H2 May AAPSW00 6.929 0.131 ▲
SHIPPING MARKET HIGHLIGHTS H1 Jun AAPXA00 6.975 0.150 ▲
JKM (May) Japanese Yen AAOVR00 752.293 14.322 ▲
■■Pacificballast rate increased to 50% JKM (May) Chinese Yuan (CNY/mt) LJCMS00 2348.521 53.921 ▲
■■Atlanticshipping rate increased to $30,000/day round-trip DES Japan/Korea (JKM) derivatives Singapore close
May LJKMO00 6.950 0.350 ▲
■■Flex Courageous heard fixed by Shell for April US Gulf load
Jun LJKMO01 7.100 0.325 ▲
■■Energy Atlantic heard fixed by Glencore for around one year Jul LJKMO02 7.150 0.325 ▲
For full forward curve, see page 4
DES Japan/Korea (JKM) derivatives London close
NEWS HEADLINES
May JKLMO00 6.850 0.150 ▲
■■LNG spot shipping market not feeling impact from Suez Canal Jun JKLMO01 6.950 -0.025 ▼
incident..................................................................................................... 3 Jul JKLMO02 7.050 0.050 ▲
For full forward curve, see page 4
■■Pakistan State Oil invites bids for two DES Mediterranean Marker (MED)
LNG cargoes............................................................................................. 6 MED (May) AASXY00 6.030 0.018 ▲
H2 Apr AASXZ00 6.141 0.036 ▲
■■Croatia receives third LNG cargo aboard vessel from US: cFlow........ 6 H1 May AASYA00 6.030 0.018 ▲
■■France’s Total resumes Mozambique LNG work after security H2 May AASYB00 6.030 0.018 ▲
improvements.......................................................................................... 7 DES Northwest Europe Marker (NWE)
NWE (May) AASXU00 6.030 0.018 ▲
■■Suez Canal blockage sends ripples through global commodity markets......9
H2 Apr AASXV00 6.141 0.036 ▲
■■More stories..........................................................................................9-11 H1 May AASXW00 6.030 0.018 ▲
H2 May AASXX00 6.030 0.018 ▲
Middle East Marker (MEM)
CONTENTS
MEM (May) LMEMA00 6.650 0.137 ▲
■■Market Commentaries............................................................................. 2 H2 Apr LMEMB00 6.675 0.200 ▲
H1 May LMEMC00 6.650 0.150 ▲
■■News.......................................................................................................... 3
H2 May LMEMD00 6.650 0.125 ▲
■■Price Comparisons................................................................................... 3 H1 Jun LMEME00 6.700 0.125 ▲
■■Recent Tenders and Strips...................................................................... 4 DES West India Marker (WIM)
WIM (May) AARXS00 6.650 0.137 ▲
■■Shipping Prices......................................................................................... 7
H1 Apr LMEAA00 6.675 0.125 ▲
■■Hydrogen..................................................................................................15 H2 Apr LMEAB00 6.675 0.200 ▲
H1 May LMEAC00 6.650 0.150 ▲
SHIPPING RATES, MAR 24 H2 May LMEAD00 6.650 0.125 ▲
$/day Ballast rate H1 Jun LMEAE00 6.700 0.125 ▲
Asia Pacific day rate AARXT00 30,000 AAXTN00 50% FOB Gulf Coast Marker (GCM)
Atlantic day rate AASYC00 30,000 AAXTM00 100% GCM (Apr) LGCSM01 5.680 0.109 ▲
TCR Australia-Japan ATCRA00 23,571.43 H1 Apr LUGCA01 5.675 0.110 ▲
TCR USG-NWE ATCRB00 30,000.00 H2 Apr LUGCB02 5.685 0.108 ▲
TCR USG-Japan ATCRC00 30,000.00 H1 May LUGCC03 5.735 0.108 ▲
DAILY CUMULATIVE AVERAGES AND MONTHLY AVERAGES LNG NETBACK PRICES ($/MMBtu)
Cumulative Previous Mar 24 Change
Mar 24 ($/MMBtu) monthly average month average FOB Australia AARXR00 6.510 0.110 ▲
JKM AAOVS00 6.670 May AAOVS03 6.077 Apr FOB Middle East AARXQ00 6.500 0.150 ▲
DES West India AALIC00 6.413 May AAWIC03 5.793 Apr DES Brazil Netforward LEBMH01 6.260 0.108 ▲
DES Mediterranean AADCU00 5.852 May AASWC03 5.520 Apr FOB Singapore AARXU00 6.634 0.139 ▲
DES Northwest Europe AASDF00 5.852 May AASDE03 5.520 Apr FOB Murmansk AARXV00 5.800 0.018 ▲
FOB GCM LGGCN00 5.230 Apr LGGCM31 4.752 Mar
JKM Yen AAOVT00 726.381 May AAOVT03 650.354 Apr
JKM Yuan LJCWM00 43.397 May LJCWM03 39.766 Apr
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LNG DAILY MARCH 24, 2021
MARKET COMMENTARIES
PLATTS LNG ASIA JKM RATIONALE & EXCLUSIONS
The S&P Global Platts JKM for May was assessed higher by 13.9 cents/MMBtu at
Asia LNG: Prices rise on early concerns of $6.924/MMBtu on March 24, on a higher competitive bid during the MOC.
Platts assessed the first half of May at $6.919/MMBtu and the second half of
Suez Canal situation, off-peak demand May at $6.929/MMBtu, with an intra-month contango structure of 1 cent/MMBtu.
Value for May 12 was assessed at $6.91/MMBtu, above normalized BP’s bid at
Singapore—The spot Asia-Pacific LNG market strengthened for a $6.9/MMBtu for May 10-14 DES JKTC, which was normalized 5 cents/MMBtu
second day, as Suez Canal transit uncertainties and lingering buying lower on narrower quality range.
A bid indication for the mid-May was received at $6.6/MMBtu.
interest for May cargoes drove bullish sentiment.
Offer indications for first and second halves of May were received at $6.85/
The S&P Global Platts JKM for May was assessed higher by 13.9 MMBtu and $6.9-6.95/MMBtu respectively. The first-half May offer indication
cents/MMBtu at $6.924/MMBtu on March 24, on a higher competitive could not be widely corroborated.
bid during the MOC. Platts assessed the first half of May at $6.919/ First-half and second-half May tradable levels were received at $6.75-7/MMBtu
MMBtu and the second half of May at $6.929/MMBtu, with a narrower and $6.8-6.95/MMBtu, respectively.
Market participants surveyed March 24 reported an almost flat structure
intra-month contango structure of 1 cent/MMBtu, compared to 2.6 between H1 May and H2 May.
cents contango on March 23. This rationale applies to symbol(s) <AAOVQ00>
A confluence of factors like the ongoing Suez Canal blockage, Exclusions: DGI’s offer for May 22-24 DES JKTC at balance of month of the
Australian floods, ongoing maintenances in Oman, Qatar and Malaysia average of May JKM plus 15 cents/MMBtu was excluded from the assessment
process.
were creating expectations of near-term price increases, according to
market sources.
PLATTS LNG ASIA WIM RATIONALE & EXCLUSIONS
“There seems to be real tightness in market since prices are up,
The S&P Global Platts WIM for May was assessed higher by 13.7 cents/MMBtu at
despite carbon and crude coming down. [Buyers] might be thinking $6.65/MMBtu on March 24, on higher indications.
that market is bottoming out so bids emerging now. Plus, there are no Platts assessed first-half and second-half May both at $6.65/MMBtu, with a flat
new projects coming online anytime soon,” one Singapore trader said. structure, compared to a 2.5 cents/MMBtu contango on March 23.
On the demand front, there was still some latent demand observed The May JKM/WIM spread was assessed at 27.4 cents/MMBtu. Tradable level for
whole month May was received at $6.55-6.6/MMBtu.
from some Japanese and Korean end-users for cargoes delivering in
This rationale applies to symbol(s) <AARXS00>.
May— which is a typical “shoulder” month, or an off-peak period when Exclusions: No market data was excluded from the assessment.
LNG demand is expected to be at a seasonally low.
On March 23, Sakhalin LNG was heard to have awarded its April 21 PLATTS LNG US FOB GULF COAST DAILY RATIONALE & EXCLUSIONS
loading sell-tender at $6.70-6.80/MMBtu DES northeast Asia, The FOB Gulf Coast Marker (GCM) for April was assessed at $5.680/MMBtu.
according to several sources. The assessment was based on pricing information heard from market sources
for FOB USGC cargoes loading in April.
Japan’s Tohoku Electric has also reported to have bought two
This rationale applies to symbol(s) <LGCSM01>
cargoes on the same day—H1 May at about $6.65/MMBtu and H2 May Exclusions: None
at $6.70-6.80/MMBtu DES.
But buyers also cautioned against spot prices for May and June PLATTS LNG EUROPEAN ASSESSMENT RATIONALE & EXCLUSIONS
rising higher than current levels which are closer to that of oil-linked The Northwest Europe Marker (NWE) for May was assessed at $6.030/MMBtu.
term contracts with lower slopes. H1 NWE for May was assessed at $6.030/MMBtu, at a 30 cent/MMBtu discount
“We are now thinking of delaying procurement to June or later,” a to the equivalent TTF forward contract.
H2 NWE for May was assessed at $6.030/MMBtu, at a 30 cent/MMBtu discount
northeast Asian end-user said. “When we look at marginal variable
to the equivalent TTF forward contract.
cost, $7/MMBtu is the limit to we can pay. Ideally, around $6/MMBtu,” The Mediterranean Marker (MED) for May was assessed at $6.030/MMBtu.
he added. H1 MED for May was assessed at $6.030/MMBtu, at a 30 cent/MMBtu discount
The overnight running aground of a mega container ship that has to the equivalent TTF forward contract.
blocked maritime traffic on both sides of the Suez Canal had delayed H2 MED for May was assessed at $6.030/MMBtu, at a 30 cent/MMBtu discount
to the equivalent TTF forward contract.
LNG ship movement late on March 23 and on March 24. The assessments were based on pricing information from market sources for
The uncertainty of the transit disruption intensified bullish market cargoes delivering within the region for May delivery.
sentiment, with sellers saying that they were raising their offer levels In the Atlantic MOC process, BP submitted two offers. One May 14, 3.30 to 3.60
for April and May cargoes as a result. TBtu cargo into Northwest Europe and northern Spain at TTF Heren Month
Ahead May minus $0.15/MMBtu. The second offer was for one April 27, 3.30 to
However, un-confirmed reports late after Asia markets closed that
3.60 TBtu cargo into Northwest Europe and Spain at TTF Heren Month Ahead
the stuck vessel had been partially refloated tempered such May minus $0.10/MMBtu.
expectations and pressured LNG futures prices lower. BP also submitted a bid for one May 14 to 16, 3.2 TBtu cargo into Krk, Croatia at
The June JKM derivative contract which had traded higher to TTF Heren Month Ahead May minus $0.30/MMBtu.
$7.25/MMBtu late afternoon, fell to $6.80/MMBtu as of 7.30 pm Due to the lack of an associated derivative forward curve for Heren TTF Month
Ahead, Platts could not derive a fixed price equivalent for the bid and offer, and
Singapore time. they were therefore not used in the assessment.
Elsewhere, Pakistan State Oil issued a two-cargo buy-tender, for This rationale applies to symbol(s) <AASXU00, AASXY00>
May 20-21 and May 25-26 delivery, which will close on April 20. Russia’s Exclusions: No exclusions
Novatek was also heard to have issued a five-cargo sell-tender, for
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 2
REPORTED ATLANTIC BIDS, OFFERS AND TRADES ($/MMBtu)

Date Seller Loading Buyer Basis Loading window Offer/Bid Notes
Best bids/offers
Mar 24 Krk Island, Croatia delivery BP DES May 14-16 May Heren TTF-0.30 bid MOC
Mar 24 BP Northwest Europe/N. Spain delivery DES May-14 May Heren TTF-0.15 offer MOC
Mar 24 BP Northwest Europe/N. Spain delivery DES Apr-27 May Heren TTF-0.10 offer MOC
REPORTED APAC BIDS, OFFERS AND TRADES ($/MMBtu)

Date Buyer Destination Seller Source Basis Delivery period Bid/Offer Notes
Best bids/offers
Mar 24 BP JKTC DES May 10-14 6.95 MOC
Mar 24 Trader JKTC DES mid-May 6.6 bid
Mar 24 JKTC Producer DES H1 May 6.85 bid
Mar 24 JKTC Producer DES H2 May 6.9-6.95 bid
Last 5 trades APAC
Mar 23 JKTC Sakhalin Energy Sakhalin DES April 21 load 6.7-6.8 DES Tender
Mar 23 Tohoku Electric Niigata or Shin-Sendai DES H1 May, H2 May 6.65-6.7, 6.7-6.8
DES Tender
Mar 18 JKTC Petronas Malaysia DES May 26-27, May 27-28 6.6-6.8 DES Tender
Mar 16 GAIL Dabhol DES April 16-21, May 2-4 6.4 and 6.2-6.3 DES Tender
Mar 16 KUFPEC JKTC Wheatstone DES May 1-5 loading 6.3-6.4 FOB Tender
Apr-Jul DES Europe, which closes March 25. NEWS

In the longer-term market, China’s Sinopec closed a 5-year, Brent-
linked buy-tender on March 22 for 1.5 MTPA of LNG deliveries starting in LNG spot shipping market not feeling impact
2022. — Kenneth Foo from Suez Canal incident
Atlantic market calms as Suez issue eases, London—The overnight running aground of an ultra large container
ship that has blocked maritime traffic on both sides of the Suez Canal
Novatek issues five cargo tender is unlikely to have a major impact on the LNG spot shipping market
London—The Atlantic market steadied towards European close following unless it is prolonged.
uncertainty at the start of the day, following news of a ship running “Not really,” answered a shipbroker when asked whether the
aground in the Suez Canal, causing a blockage through the canal. grounding of the Ever Given, a 200,000 tonne ship operated by
However, news of the vessel being partially refloated eased nerves and Evergreen, would affect the LNG spot shipping market. “It might take 2
led to a retracing of Eurogas through the day, following a morning spike. to 4 days to move the ship out of the way, some people even say it
Cargo traders were also relieved to not have to seek volume for might even be done today,” continued the shipbroker.
shorts into Europe on short notice as some would have been
potentially facing delays for Qatari volume into their slots.
Platts assessed the TTF May contract at $6.33/MMBtu, just under 2
cents/MMBtu up on-day with some support near European close owing
to a Norwegian outage and gains in the Brent crude market.
In tenders, Novatek was reported to have issued a five cargo DES
Europe tender for April to July delivery, closing March 25.
EDP closed a tender on March 24 for an H2 September delivery
cargo into Sines, however no result was reported.
In the Atlantic MOC, BP bid for a DES Krk Island cargo for May 14-16
delivery at TTF-$0.30/MMBtu. BP offered two DES Northwest Europe/
northern Spain delivery cargoes for May 14 and April 27 delivery at TTF-
$0.15/MMBtu and TTF-$0.10/MMBtu
In shipping, the Pacific ballast rate increased to 50% on the back of
higher pricing indications. The Atlantic shipping rate decreased to
$30,000/day while the Atlantic ballast rate increased to 100%, on the
back of higher indications and pricing heard from recent fixtures.
The Flex Courageous was heard fixed by Shell for an April US Gulf
load. Hire rate heard was $40,000/day with round-trip economics.
The Energy Atlantic was heard fixed by Glencore for around one
year, with the charter slated to begin shortly. Hire rate heard was in the
$50,000s/day. — Piers De Wilde
ASIA/MIDDLE EAST ($/MMBtu), MAR 24 EUROPE ($/MMBtu), MAR 24

$/MMBtu Eur/MWh Eur/MMBtu
DES Japan/Korea Marker (JKM)
JKM (May) AAOVQ00 6.924
DES Mediterranean Marker (MED)
JKM (H2 Apr) AAPSU00 6.950 MED (May) AASXY00 6.030 LNMTA00 17.372 LNMXA00 5.095
JKM (H1 May) AAPSV00 6.919
MED (H2 Apr) AASXZ00 6.141
MED (H1 May) AASYA00 6.030
JKM (H2 May) AAPSW00 6.929
MED (H2 May) AASYB00 6.030
JKM (H1 Jun) AAPXA00 6.975 Dated Brent (16:30 London) ADBAB00 10.97
Asian Dated Brent (16:30 Singapore) ADBAA00 10.59 MED vs Henry Hub futures AASYF00 3.459
JKM vs Henry Hub futures AAPRZ00 4.354 MED vs TTF LNTFS00 -0.300
JKM vs NBP futures AAPSA00 0.677 MED vs NBP futures AASYH00 -0.146
JKM vs TTF LNTFJ00 0.594 MED vs Dated Brent (16:30 London) AASYJ00 -4.942
JKM vs Asian Dated Brent (16:30 Singapore) AAPSB00 -3.668 MED vs NWE ALNSA00 0.000
JKM vs MED (16:30 London) ALNGB00 0.894 MED vs JKM AASYM00 -0.894
JKM vs NWE (16:30 London) ALNGA00 0.894 DES Northwest Europe Marker (NWE)
DES Japan/Korea (JKM) derivatives Singapore close NWE (May) AASXU00 6.030 LNNTA00 17.372 LNNXA00 5.095
NWE (H2 Apr) AASXV00 6.141
May LJKMO00 6.950
NWE (H1 May) AASXW00 6.030
Jun LJKMO01 7.100
NWE (H2 May) AASXX00 6.030
Jul LJKMO02 7.150 Dated Brent (16:30 London) ADBAB00 10.97
Aug LJKMO03 7.200 NWE vs Henry Hub futures AASYE00 3.459
Q3 2021 LJKQR01 7.075 NWE vs TTF LNTFN00 -0.300
Q4 2021 LJKQR02 7.850 NWE vs NBP futures AASYG00 -0.146
Winter 2021 LJKSN01 8.175 NWE vs Dated Brent (16:30 London) AASYI00 -4.942
Summer 2022 LJKSN02 6.450 NWE vs MED AASYK00 0.000
2022 LJKYR01 7.150 NWE vs JKM AASYL00 -0.894
NWE as a % of NBP AASYD00 97.63
2023 LJKYR02 6.575
2024 LJKYR03 6.375 Competing fuel prices
DES Japan/Korea (JKM) derivatives London close Northwest Europe fuel oil LAEGR00 10.34
CIF ARA 15-60 day thermal coal CSAAB00 2.97
May JKLMO00 6.850
Jun JKLMO01 6.950
Jul JKLMO02 7.050 NORTH AMERICA ($/MMBtu), MAR 24
Aug JKLMO03 7.100
FOB Gulf Coast Marker (GCM)
Q3 2021 JKLQR01 7.100
GCM (Apr) LGCSM01 5.680
Q4 2021 JKLQR02 7.865
GCM (H1 Apr) LUGCA01 5.675
Winter 2021 JKLSN01 8.100 GCM (H2 Apr) LUGCB02 5.685
Summer 2022 JKLSN02 6.475 GCM (H1 May) LUGCC03 5.735
2022 JKLYR01 7.175 Dated Brent (16:30 London) ADBAB00 10.97
2023 JKLYR02 6.525 GCM vs JKM LGMJM01 -1.244
2024 JKLYR03 6.325 GCM vs Henry Hub futures LGMHM01 3.162
GCM vs TTF LNTFG00 -0.711
FOB Middle East GCM vs NWE LGEUR00 -0.350
FOB Middle East AARXQ00 6.500 GCM vs MED LGMET00 -0.350
GCM vs NBP futures LGMNM01 -0.794
DES West India Marker (WIM)
GCM vs Dated Brent (16:30 London) LGMDB00 -5.292
WIM (May) AARXS00 6.650 GCM vs USGC HSFO LGMFO00 -2.700
FOB Australia (netback) Competing fuel prices
JKM (May) AAOVQ00 6.924 US Gulf Coast high sulfur fuel oil LUAXJ00 8.83
(-) Freight AAUSA00 0.41 New York Harbor 1%S fuel oil LUAXD00 10.23
FOB Australia AARXR00 6.51
Key gas price benchmarks PLATTS WIM RLNG DAILY PRICES, MAR 24
Japan Customs Cleared LNG (Dec) LAKPN00 7.18 Final $/MMBtu Rupee/MMBtu
Japan Customs Cleared LNG (Jan) LAKPM00 8.48 Estimated
Ex-Terminal
Platts Dutch TTF Dahej RLEDA00 7.68 RLEIA00 558.08
Apr GTFWM10 6.391 Hazira RLEDB00 7.82 RLEIB00 567.99
May GTFWM20 6.330 Dabhol RLEDC00 7.70 RLEIC00 559.23
Mundra RLEDE00 7.74 RLEEI00 561.95
Competing fuel prices Kochi RLEDD00 8.25 RLEDI00 599.13
Japan Customs Cleared crude oil (Dec) ($/b) AAKOP00 44.46 Final Average RLEDF00 7.84 RLEIF00 569.28
Japan Customs Cleared crude oil (Jan) ($/b) AAKOM00 50.09 Estimated
Location
HSFO 3.5% sulfur 180 CST FOB Singapore LUAXZ00 9.17
Ahmedabad RLDDJ00 8.20 RLDIJ00 595.21
NEAT Coal Index JKTCB00 3.687 Morbi RLDDK00 8.25 RLDIK00 599.08
Minas crude oil LCABO00 9.809 Panvel RLDDL00 8.44 RLDIL00 612.62
Naphtha CFR Japan LNPHJ00 11.955 Dabhol RLDDC00 8.44 RLDIC00 612.62
Notes: Japan Customs Cleared value shows latest available CIF price published by the Ministry of Vijaipur RLDDM00 8.38 RLDIM00 608.90
Finance, converted to US dollars per MMBtu. All other values reflect Platts most recent one-month Kota RLDDN00 8.38 RLDIN00 608.90
forward assessments for each product in each region, converted to US dollars per MMBtu. JKM Chhainsa RLDDO00 8.45 RLDIO00 613.68
Marker, SWE LNG and NWE LNG average the assessments of the two half-months comprising the Jagdishpur RLDDP00 8.45 RLDIP00 613.68
first full month of forward delivery. Asian LNG assessments assessed at Singapore market close New Delhi RLDDQ00 8.45 RLDIQ00 613.68
0830 GMT, European LNG assessment assessed at London market close 1630 UK time. NYMEX Koottanad RLDDR00 8.91 RLDIR00 647.05
Henry Hub futures and ICE NBP futures values taken at Singapore market close and London Kakinada RLDDS00 9.06 RLDIS00 657.76
market close. ICE NBP futures converted from Pence/Therm to $/MMBtu. Asian Dated Brent crude
Average RLDDT00 8.49 RLDIT00 616.65
oil assessed at Asian market close 0830 GMT and converted from $/barrel to $/MMBtu. Detailed
assessment methodology is found on www.platts.com. Prices are net-forward calculations derived from the Platts WIM and exclude VAT and CST sales
taxes. Delivered prices represent the cost of delivery from the nearest connected LNG terminal via
pipeline.
RECENT TENDERS AND STRIPS

Tender/ Tender (Loading) or Slots/
strip Issuer/location type delivery period cargoes Opening Closing date Validity Notes Results
March 24
Tender Novatek - Yamal Sell 01-Apr-21 - 5 DES 25-Mar-21 DES Europe, April-July delivery.
31-Jul-21
Tender Tohoku Electric - Buy 10-May-21 - 1 DES 22-Mar-21 23-Mar-21 delivery to Niigata or Shin-Sendai Heard awarded $6.65-6.8/
Niigata 20-May-21 LNG terminal, with a GHV of MMBtu
1030-1150 Btu/cu ft and volume
of 3.0-3.5 TBtu, closes noon
March 23 Japan Standard Time
Tender GSPC - Dahej Buy 17-Apr-21 - 1 DES 22-Mar-21 Heard unawarded
25-Apr-21
Tender Darwin LNG - Sell (27-Apr-21 - 1 DES or 23-Mar-21 25-Mar-21 Apr 27-29 load 3.8 TBtu or May
Darwin 29-Apr-21) FOB 5-11 delivery 3.75 TBtu, closing
3pm SGT
Tender Adgas - ADNOC Sell (26-Apr-21 - 1 24-Mar-21
Das Island 28-Apr-21) Unknown
Tender Indian Oil Corp Buy 27-Apr-21 - 1 DES 24-Mar-21
(IOC) - Dahej 28-Apr-21
Tender Shenzhen Energy - Buy 02-May-21 - 1 DES 25-Mar-21
Shenzen Diefu 05-May-21
Tender PTT - Map Ta Phut Buy 27-Apr-21 - 3 DES 24-Mar-21 25-Mar-21 Apr 27-May 7, May 12-18, May
28-May-21 24-28 deliveries
Tender Calamari LNG - Buy 15-Apr-21 - 1 DES 26-Mar-21 26-Mar-21 partial cargo requested
Colombia 30-Apr-21
Tender PPT - Corpus Sell (11-May-21 - 1 FOB 18-Mar-21 Heard awarded around
Christi 11-May-21) 115%HH+$2.70-2.80/MMBtu
Tender Pertamina - Sell (30-May-21 - 1 FOB 18-Mar-21 Heard awarded around
Corpus Christi 30-May-21) 115%HH+$2.70-2.80/MMBtu
Tender Pakistan LNG - Buy 30-Apr-21 - 8 DES 30-Mar-21 31-Mar-21 Delivery window: April 30, May
Port Qasim 28-Jun-21 11-12, May 16-17, May 26-27,
May 31, June 8-9, June 18-19,
and June 27-28.
Tender GSPC - India Buy 01-Jul-21 - 12 DES 23-Mar-21
30-Jun-22
Tender Sakhalin Energy - Sell (21-Apr-21 - 1 DES or 23-Mar-21 2 week return voyage
Sakhalin 21-Apr-21) FOB
Tender Angola LNG - Sell 05-Apr-21 - 1 DES 24-Mar-21 25-Mar-21 Onboard Sonangol Benguela
Angola 08-May-21 DES Brazil, Europe, Mexico, India,
Pakistan, Singapore, furthest to
JKTC
Tender KPC - Kuwait Buy 27-Apr-21 - 1 DES 23-Mar-21
28-Apr-21
Tender Freeport - Sell (11-Jul-21 - 3 FOB 17-Mar-21 July 11, 31 and Aug. 24 load Heard awarded around 115%
Freeport 24-Aug-21) HH+$2.50/MMBtu
Tender EDP - Sines Buy 16-Sep-21 - 1 DES 18-Mar-21 24-Mar-21 H2 Sept. delivery
30-Sep-21
Tender IEASA - Escobar Buy 01-Apr-21 - 24 DES 16-Mar-21 18-Mar-21 partial cargoes requested BP heard awarded over half of
31-Aug-21 volume, other winners heard
include Naturgy, Total and
Gunvor
Tender Petronas - Sell 26-May-21 - 2 DES 18-Mar-21 From Bintulu: Apr 26-27 | PFLNG:
Malaysia 28-May-21 Apr 27-28 Closing 130pm KL
time
A charterer said it seemed to be rather calm. March 8, was in the Mediterranean Sea near the entrance to the Suez
A separate chartering source said, “It seems that it might be Canal on March 24, according to cFlow, S&P Global Platts trade flow
resolved soon. I saw some photos that it’s now at the side of the software. Its captain’s destination was listed as awaiting orders.
channel, but there are no verifications.” LNG tankers heading from the US Gulf Coast to Asia generally pass
A third charterer said QG (Qatargas) may get impacted depending through the Panama Canal, as it is the shortest route. Sometimes they
on how long it takes to get resolved, because going into the opt to sail eastward, to avoid congestion and transit fees at the
Mediterrenian or Europe via the Suez Canal can save quite some time. Panama Canal.
“Deliveries from Ras Laffan to Europe may have to go around the The Cape of Good Hope and Suez will generally see increased
Cape instead of via the Suez, if this gets prolonged,” explained the activity in shoulder periods as LNG charterers take advantage of the
charterer. contango in the curve. While the Suez route is faster than rounding the
A spot voyage from Qatar into Northwest Europe takes around 16 Cape, the Suez has the advantage of greater optionality as it passes
days via the Suez, while going around the Cape of Good Hope would over 80% of the world’s LNG demand on the way to the Japan-South
take around 27 days. Korea region.
The LNG tanker Woodside Charles Allen, which loaded at Cheniere One LNG tanker that loaded at Sabine Pass was near the entrance
Energy’s Sabine Pass export terminal in Louisiana and shipped on to the Panama Canal on March 24, while another LNG tanker that
SOUTH AMERICA ($/MMBtu), MAR 24

loaded at Sabine Pass was passing through the Canal on March 24,
DES Brazil Netforward
cFlow shows. Two more LNG tankers that loaded at Freeport LNG in
DES Brazil (Apr) LEBMH01 6.260
Texas were in the Pacific Ocean on March 24 after recently passing DES Brazil vs NWE Fuel Oil Derivative LAARM01 -4.080
through the Panama Canal. DES Brazil vs DES MED LNG LASWM01 0.230
DES Brazil vs Dated Brent LADBM01 -4.712
Platts Analytics expects full dispatch economics out of the US to DES Brazil vs Henry Hub (16:30 London) LAHHM01 3.737
continue in the months ahead, due to strong LNG market factors such as DES Brazil vs JKM (16:30 London) LAJKM01 -0.664
supportive prices and low shipping costs. — Wyatt Wong, Harry Weber DES Brazil vs NBP (16:30 London) LABPM01 -0.214
Pakistan State Oil invites bids for two NORTH AMERICAN FEEDGAS ($/MMBtu), MAR 23
LNG cargoes Daily average US LNG feedgas cost ALNFG00 2.399
30-day moving average US LNG feedgas cost ALNUS00 4.387
Karachi—Pakistan State Oil, the country’s state-run retail oil supplier, Daily average USGC LNG feedgas cost ALNFH00 2.421
has invited offers for two LNG cargoes for the month of May in an 30-day moving average USGC LNG feedgas cost ALNUG00 4.549
effort to secure supplies for the summer season ahead. Export facility Estimated feedgas cost
PSO has invited the offers for one cargo to delivered by May 20-21 Sabine Pass ALNFA00 2.399
and the second to be delivered by May 25-26, according to a document Corpus Christi ALNFB00 2.489
Cove Point ALNFC00 2.216
received from the company.
Cameron ALNFD00 2.399
The companies can submit their interest until April 20, the Freeport ALNFE00 2.415
document said. Elba Island ALNFF00 2.472
The invitation of offers by PSO comes after Pakistan LNG Ltd. on Facility feedgas costs represent a calculation derived from S&P Global Platts’ North American gas
spot price indices at the hub(s) from which feedgas would be procured most economically for the
March 22 invited bids for eight cargoes to be delivered between April export facility. The average summary costs are an average of the relevant export facilities’ feedgas
and June, the document said. costs weighted by Platts Analytics’ daily estimated volume delivered to each facility.
Pakistan is speeding up its plans to import LNG ahead of the

summer season in an effort to reduce power cuts, said Tahir Abbas, US CARGO CANCELLATIONS, FEB 22
director research at Arif Habib Ltd., a Karachi based brokerage firm, June 2020 35
adding that electricity produced from furnace oil would be relatively July 2020 45
expensive compared with LNG. — Haris Zamir August 2020 45
September 2020 26
October 2020 9
Croatia receives third LNG cargo aboard vessel November 2020 5
from US: cFlow December 2020

January 2021
0
2
■■Patris arrived at Croatian terminal on March 24 February 2021 5
■■Allmid-term capacity booked at 2.6 Bcm/year site March 2021 0
April 2021 0
■■Utility HEP held five-cargo tender in late 2020
May 2021 0
The figures are collected from market sources. If asterisked the figure is provisional, otherwise it
The 2.6 Bcm/year capacity LNG import terminal in Croatia received its is the final estimate for cancellations for the stated month.
third cargo on March 24, according to cFlow, Platts trade flow software,
with a cargo brought in from Freeport in the US aboard the Patris.
NATURAL GAS FUTURES ($/MMBtu), MAR 24
The LNG Croatia — a dedicated FSRU acting as a gateway for
NYMEX HH Singapore close (Apr) AAPSD00 2.533
international LNG supplies into Croatia and the southeast European NYMEX HH Singapore close (May) AAPSE00 2.570
region for the first time — received its first cargo on Jan. 1 from the ICE NBP Singapore close (Apr) AAPSF00 6.550
Cove Point export terminal in the US, marking the start of operations. ICE NBP Singapore close (May) AAPSG00 6.247
A second cargo was delivered on March 2 aboard the Adam LNG NYMEX HH London close (Apr 21) AASYN00 2.523
from Nigeria, which according to market sources was thought to be NYMEX HH London close (May 21) AASYO00 2.571
part of a five-cargo tender held by Croatian utility HEP in late 2020. ICE NBP London close (Apr 21) AASYR00 6.474
ICE NBP London close (May 21) AASYS00 6.176
A total of 1.88 Bcm of capacity has been booked at the Croatia
NYMEX HH US close (Apr 21) NMNG001 2.518
facility for the period Jan. 1-Sept. 30, 2021, with the full capacity of 2.6 NYMEX HH US close (May 21) NMNG002 2.568
Bcm/year booked for the following two gas years.
However, a spike in spot LNG prices in January saw cargoes pulled
to higher-priced markets instead of coming to Croatia. MARINE FUEL LNG BUNKER, MAR 24
Spot LNG prices have been hit by extreme price volatility over the $/MMBtu $/mt
past year, with the JKM benchmark spot Asian LNG price hitting an all- Singapore LNBSG00 8.424 LNBSM00 325.529
Eur/MWh $/mt
time low $1.825/MMBtu at the end of last April before rising to a record
Rotterdam LNBRT00 25.425 LNBRM00 340.684
high $32.50/MMBtu in mid-January. MMBtu to $/mt factor: 38.643; MWh to $/mt factor: 11.322.
Prices have softened since then, with S&P Global Platts assessing The timetable for first LNG from the project — designed to have a
the front-month JKM price at $6.78/MMBtu on March 23. capacity of 13.1 million mt/year according to Total’s latest earnings
Among those with capacity at the Croatian terminal are the presentation — has been unaffected by the disruption, with first
Croatian trading subsidiaries of Switzerland-based MET and Hungary’s cargoes still expected in 2024.
MFGK, Qatari-owned PowerGlobe Europe and HEP. “The project will progressively resume construction activities at the
MFGK has already agreed a deal with Shell for 0.25 Bcm/year of Afungi site following the implementation of additional site security
LNG supply into the Croatian terminal that will then be shipped onward measures,” Total said in an emailed statement March 24.
to Hungary. “Total and the government of Mozambique have worked together
HEP, meanwhile, is a key supplier of domestic gas in Croatia, while to define and implement an action plan with the objective of
PowerGlobe has more of a pure-play trading strategy and is looking to reinforcing, in a sustained manner, the security of the Afungi site and
expand its role by booking more import capacity in southern Europe. of the surrounding area and neighboring villages,” it said.
Croatia LNG — a joint venture of HEP and Croatian grid operator “A comprehensive roadmap has been defined and implemented,
Plinacro — operates the FSRU project. allowing a gradual remobilization of the project workforce and the
It confirmed the arrival of the Patris into the terminal on March 24 resumption of LNG plant construction activities.”
in a statement posted to its website. — Stuart Elliott
21% complete
France’s Total resumes Mozambique LNG work In February, Total CEO Patrick Pouyanne said the project, whose
capacity previously was pegged at 12.9 million mt/year, was 21%
after security improvements complete as of the end of 2020.
■■FirstLNG production still expected in 2024 Total operates Mozambique LNG with a 26.5% stake having taken
■■25-km perimeter secured around Afungi site over the project in September 2019 as part of its deal with Occidental
■■Staff removed in January as insurgency escalated to buy assets the US company acquired with its purchase of Anadarko.
Its partners are ENH (15%), Mitsui (20%), ONGC Videsh (10%), Beas
London—France’s Total has resumed construction work at the site of Rovuma Energy (10%), BPRL (10%), and PTTEP (8.5%).
its Mozambique LNG project after security was beefed up following an Mozambique’s more than three-year-old insurgency saw militants
escalation of the Islamist insurgency in the country at the end of 2020. close in on the site of the project on the Afungi peninsula — also home
Total decided at the start of 2021 to reduce the number of to ExxonMobil’s planned 15.2 million mt/year Rovuma LNG project — at
personnel at the Afungi site in view of the security situation and a 25 the end of 2020.
km perimeter surrounding the project has now been set up as a special It highlights the continued security issues facing the southeast
security area. (continued on page 9)
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SHIPPING PRICES
SHIPPING RATES, MAR 24 FREIGHT ROUTE COSTS, MAR 24 ($/MMBtu)

$/day Asian discharge ports
Asia Pacific day rate AARXT00 30,000 Japan/Korea South China/Taiwan West India
Atlantic day rate AASYC00 30,000 Middle East AAUUA00 0.59 AAUSH00 0.52 AAUSP00 0.17
TCR Australia-Japan ATCRA00 23,571.43 Australia (Dampier) AAUSA00 0.41 AAUSI00 0.34 AAUSQ00 0.38
TCR USG-NWE ATCRB00 30,000.00 Australia (Gladstone) ACABA00 0.42 ACABB00 0.46 ACABC00 0.59
TCR USG-Japan ATCRC00 30,000.00 Bontang AOJKA00 0.28 AOCTA00 0.22 AOWIA00 0.35
Bintulu ABJKA00 0.31 ABCTA00 0.21 ABWIA00 0.35
$/MMBtu
Singapore ASJKA00 0.31 ASCTA00 0.21 ASWIA00 0.25
PLF1 Middle East-Japan/Korea AAUUA00 0.59 Tangguh ATJKA00 0.26 ATCTA00 0.23 ATWIA00 0.40
PLF2 Middle East-NWE AAUTE00 0.82 Trinidad via Suez AAUSB00 1.61 AAUSJ00 1.53 AAUSR00 1.11
PLF3 Trinidad-NWE AAUUC00 0.39 Trinidad via Panama AAUXB00 1.17 AAUZB00 1.38
Trinidad* AAUZC00 1.17 AAUZD00 1.38
Nigeria AAUSC00 1.32 AAUSK00 1.20 AAUSS00 0.91
Algeria AAUSD00 1.26 AAUSL00 1.18 AAUST00 0.79
SHIPPING RATES ($1000s/DAY) Belgium AAUSE00 1.42 AAUSM00 1.30 AAUSU00 0.90
Peru AAUSF00 0.82 AAUSN00 0.93 AAUSV00 1.00
300 Russia AAUSG00 0.18 AAUSO00 0.24 AAUSW00 0.54
Spain ACAAA00 1.33 ACAAB00 1.21 ACAAC00 0.85
250 Norway ACAAH00 1.61 ACAAI00 1.44 ACAAJ00 1.07
USGC* LAUVA00 1.25 LAUVB00 1.46 LAUVC00 1.23
200 USGC via Panama LAUVI00 1.25 LAUVL00 1.46
USGC via Suez LAUVJ00 1.78 LAUVM00 1.61 LAUVO00 1.23
Asia Pacific USGC via Cape LAUVK00 1.63 LAUVN00 1.50 LAUVP00 1.27
150 Atlantic
EMEA discharge ports
100 South West Europe North West Europe Kuwait/UAE
Middle East AAUSX00 0.76 AAUTE00 0.82 LMEMM00 0.12
50 Australia (Dampier) AAUSY00 1.04 AAUTF00 1.11 LMEMN00 0.46
Australia (Gladstone) ACABD00 1.25 ACABE00 1.33 ACABI00 0.67
0 Trinidad AAUSZ00 0.42 AAUUC00 0.39 LMEMP00 1.05
Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 Nigeria AAUTA00 0.65 AAUTG00 0.65 LMEMQ00 1.17
Algeria AAUTB00 0.17 AAUTH00 0.24 LMEMR00 0.73
Source: S&P Global Platts Belgium AAUTC00 0.23 LMEMS00 0.88
Peru AAUTD00 0.87 AAUTI00 0.87 LMEMT00 1.08
Russia AAUUB00 1.20 AAUTJ00 1.24 LMEMU00 0.76
Spain ACAAD00 0.23 LMEMV00 0.79
SHIPPING CALCULATOR, MAR 24 Norway ACAAK00 0.35 ACAAL00 0.22 LMEMW00 1.01
Murmansk AARXW00 0.23
Australia- Middle East- USGC* LAUVD00 0.56 LAUVE00 0.53 LMEMX00 1.20
Japan/Korea India USGC via Suez LMEMY00 1.20
Ship size (mt) 72980.77 72980.77 USGC via Cape LMEMZ00 1.25
Trip length (days) 9 3 Americas discharge ports
Carrier day rate ($/day) 30000 30000
US Atlantic Coast Argentina Brazil
Day rate cost ($/MMBtu) 0.14 0.06
Middle East AAUTK00 0.80 AAUTS00 0.71 ACAAP00 0.85
Boil-off cost 0.14 0.05
Australia (Dampier) AAUTL00 0.72 AAUTT00 0.73 ACAAQ00 0.91
Bunker fuel ex-wharf 380 CST ($/mt) 368.75 395.00 Australia (Gladstone) ACABF00 0.90 ACABH00 0.65 ACABG00 0.82
Fuel oil cost ($/MMBtu) 0.04 0.01 Trinidad AAUTM00 0.23 AAUTU00 0.42 ACAAR00 0.32
Cost of voyage ($/MMBtu) 0.41 0.17 Nigeria AAUTN00 0.65 AAUTV00 0.65 ACAAS00 0.62
Algeria AAUTO00 0.35 AAUTW00 0.55 ACAAT00 0.52
Belgium AAUTP00 0.32 AAUTX00 0.62 ACAAU00 0.59
Peru AAUTQ00 0.62 AAUTY00 0.35 ACAAV00 0.55
Russia AAUTR00 1.06 AAUTZ00 0.90 ACAAW00 1.29
Spain ACAAE00 0.33 ACAAF00 0.58 ACAAG00 0.51
Analytics
Integrated, innovative.
Across geography Norway ACAAM00 0.36 ACAAN00 0.75 ACAAO00 0.75
and across commodity. USGC* LAUVG00 0.67 LAUVH00 0.57
*Most economic.
All values calculated based on prevailing spot market values during the day for LNG, bunker fuel
Visit spglobal.com/analytics-insight and ship chartering. No route cost is calculated for Zeebrugge to NW Europe, or Spain to SW
Europe. Other routes appear blank on days when a public holiday in one or another location means
underlying values are not published. Detailed assessment methodology, including assumed route
times and underlying values, is found on www.platts.com.
African country and its fledgling LNG industry. Trade flows

More than 30 million mt/year of LNG production capacity is under The Suez Canal is one of the world’s most critical commodity
development in Mozambique as the country looks to join the ranks of chokepoints, connecting the Red Sea with the Mediterranean. Almost
the world’s biggest LNG exporters. 10% of total seaborne oil trade and 8% of global LNG trade passes
Militants stepped up attacks in the Palma district between the through the waterway, according to data from the US Energy
Afungi peninsula and the militant-controlled port of Mocimboa da Praia Information Administration.
in recent months. In February, 338 oil tankers transited the canal, according to data
The port was occupied in mid-August as part of the growing compiled by BIMCO and Leth Agencies. This compares with a monthly
Islamist insurgency that began in October 2017. average of 364 and 385 tankers in 2020 and 2019, respectively. A total
A number of groups are now part of the insurgency — which also of 18,880 ships transited the canal in 2019, according to data from
spread to offshore tourist islands in the autumn — including the Ahlu Suez Canal Authority.
Sunnah Wa-Jamo (ASWJ) group and the Islamic State’s Central Africa There are already close to 80 ships — including crude, product and
Province (ISCAP), which has declared Mocimboa da Praia as the capital chemical tankers, dry bulk carriers and container vessels — waiting to
of its province. — Stuart Elliott transit the canal from both sides, according to data from Platts tanker
tracking service cFlow. Meanwhile, in the Great Bitter Lake region —
Suez Canal blockage sends ripples through which is just north of where the container ship grounded — there are
already 34 ships waiting to pass through.
global commodity markets Some of the oil tankers are carrying crude, such as Saudi Arabia’s Arab
Washington—One of the world’s biggest container vessels ran aground Light and Arab Extra Light, Iraq’s Basrah Light and UAE’s Murban, and also
in the Suez Canal late March 23, trigging a major scare in the global refined products including jet fuel and gasoil, according to cFlow.
commodity markets by blocking a critical transit chokepoint. Several container liners are looking to re-route cargoes via the
With the Ever Given vessel partially refloated by midday March 24, Cape of Good Hope in an attempt to keep cargoes moving, although
market watchers were mostly expecting the shipping route to reopen this will cause additional costs in the market. There are already
to traffic by late on March 24 or early the following day. significant delays at European container ports owing to ongoing firm
S&P Global Platts Analytics said the incident is unlikely to have any demand and equipment shortages around the world, which have
long-term effects on shipping rates. But it added that the backlog of pushed freight rates to all-time highs.
vessels could take a minimum of five days to clear, with no impact on
short-term freight market fundamentals. Demurrage costs, which are SUEZ CANAL SHIPPING TRAFFIC YET TO RECOVER
charged by shipowners to the consignee when transit is delayed, will FROM PANDEMIC SLUMP
be the most likely mechanism to accommodate the delays to transiting (number of ships) (average daily transits)
1500 45
the Suez Canal, Platts Analytics said in a recent note.
The following is a round-up of the market impact and trade
implications of the ongoing Suez Canal blockage.
1000 40
Oil tanker
Prices and freight rates Dry bulker
Oil prices — which lost nearly $8/b in the week ended March 20 — Container
were lent some support on March 24 by the blockage to the waterway. 500 35 ship
ICE May Brent crude futures were trading at $63.90/b as of 1607 GMT,
up $3.13/b from its previous settlement.
The spot Asia-Pacific LNG market was also up, as Suez Canal 0 30
transit uncertainties and lingering buying interest for May cargoes Feb-20 May-20 Aug-20 Nov-20 Feb-21
drove bullish sentiment. The S&P Global Platts JKM for May was Source: Leth Agencies, BIMCO
assessed higher by 13.9 cents/MMBtu at $6.924/MMBtu on March 24.
The transit disruption on the LNG markets pushed sellers to raise their Infrastructure
offer levels for April and May cargoes. Key crude producers like Saudi Arabia, Russia, Iraq, the UAE,
The incident was already affecting freight rates on a wide range of Azerbaijan, Kazakhstan, Norway, Kuwait, Libya and Algeria rely on Suez
ships, with an immediate impact seen on containers and oil tankers. Canal to export their crude. Flows of petroleum products have also
Spot freight rates for a Suezmax shipping crude from the Persian Gulf risen in recent years. Europe sends a sizable amount of naphtha to
to the Mediterranean were assessed at Worldscale 23 on March 24, the Asia every week, while large shipments of jet fuel and diesel come
highest level since Feb. 2, according to Platts data. Freight rates in the from Asia and the Middle East into Europe.
Mediterranean and Black Sea were also strengthening, with ships The chokepoint is also critical for LNG. A hefty amount of Qatari
stuck in the long traffic jam tightening tonnage, shipping sources said. LNG destined for European markets passes through the waterway. But
The Platts Container Rate 1 — North Asia-to-North Continent — Qatar has started to divert more cargoes to Asia in recent years.
was heard at $9,500/FEU on March 24, up from $1,375/FEU a year Fully laden VLCC oil tankers cannot pass through the Suez Canal,
earlier, as logistical issues continue to bite. due to its width. However, Suezmaxes, Aframaxes, Medium Range 1 and
Medium Range 2, and Handysize tankers regularly navigate the canal. expert meeting, will pave the way for the Ministry of Economy, Trade
Most exports of petroleum and natural gas from the Persian Gulf and Industry to conclude its examination of the power utilities’
that transit the Suez Canal, or the SUMED pipeline, also pass through response to January’s tightened supply and demand power balance.
both the Bab-el-Mandeb and the Strait of Hormuz. Some 5.5 million b/d The Electricity and Gas Market Surveillance Commission’s findings
of crude and oil products transited the Suez Canal, or the SUMED followed its investigation into the major power utilities’ electricity supply
situation, which included a Feb. 25 public hearing with the utilities.
The surveillance commission’s probe aimed to look into the utilities’
electricity sales and purchases as well as their fuel restrictions over
December to January to verify whether there was any wrongdoing.
Under fair electricity trade guidelines issued by the Japan Fair
Trade Commission any act of withholding sales with an intention to
raise a price to a level, which cannot be explained by market
fundamentals, could be seen as an incidence of market manipulation.
However, following its scrutiny of collected information, the
surveillance commission said March 24 it has not found any evidence
that Japan’s major power utilities acted to withhold sales.
Findings
According to its analysis of the utilities’ potential electricity supply
volumes versus their actually sold electricity volumes, the surveillance
commission has confirmed that the utilities did indeed supply all of
their surplus electricity during spot electricity tenders in the
December-January period.
The surveillance commission did not find that utilities overestimated
their electricity demand, with deviations between their estimated and
actual demand averaging 1.1% during the two-month period.
The commission also focused its probe into the power utilities’
fuels restrictions, on the grounds that reduced LNG and oil stocks had
caused these restrictions and reduced electricity sales tenders after
pipeline in 2016, according to the EIA. mid-December.
The Ever Given ran aground at about 0740 hours local time (0840 However, following its examination of the power utilities’
GMT) on March 23 after it suffered a blackout while transiting in a “justifiability on fuel restrictions” and the “validity” of their fuel
northerly direction. The stranded vessel has a capacity of 20,000 operations, the commission said it has confirmed that the utilities’ fuel
twenty-foot equivalent units and is sailing under the Panama flag. The restrictions were taken based on their stated methodologies, including
ship continues to remain anchored at the southern end of the Suez the lowest limits in tank operations, inventories, shipping schedules
Canal, according to cFlow. The Ever Given loaded from the Chinese port and demand outlook.
of Yantian on March 8 and was on its way to Rotterdam in the
Netherlands before the incident. Representatives at Taiwan-based Robust demand
Evergreen Maritime — the ship’s operators — were not immediately METI has said the spike in spot electricity prices in January was
available for comment. due to a combination of increased power demand from cold spells,
— Eklavya Gupte, Robert Perkins, Tom Washington decreased gas-fired power output from reduced LNG inventories and
electricity being sold out on the wholesale market.
METI commission finds no wrongdoing by Japan’s power demand rose 7.6% year on year to 86,427 GWh in
January, after having risen 8% year on year in the second half of December
utilities during Japan’s winter power shortages to 43,189 GWh amid cold spells in the country, according to METI.
■■Nowithholding of electricity sales METI has said LNG restrictions by power utilities were imposed
■■Power utilities’ fuel restrictions justifiable because power demand in the first half of January had risen to its
■■LNG stocks drop 40% over month from mid-Dec: METI highest level in five years as average nationwide temperatures dropped
to 2 degrees Celsius below the 30-year averages.
Tokyo—Japan’s Electricity and Gas Market Surveillance Commission LNG stocks held by power utilities also dropped by around 40%
said March 24 it has not found any wrongdoing by major power utilities over the course of a month from mid-December, which led to utilities
in their electricity supply to spot markets or in their fuel restrictions restricting LNG thermal power generation amid difficulties in building
during the country’s recent winter power supply shortages. LNG inventories in the face of strong demand in East Asia, coupled
The findings, which were presented during the commission’s with shipping constraints in the Panama Canal, according to METI.
The fuel restrictions for thermal power generation also came at a port to use cleaner fuels such as LNG, by providing them with port dues
time when Japan had decommissioned and mothballed about 10 GW of concessions, and co-funding building of LNG-fueled bunker tankers.
oil-fired power capacity in the five years to fiscal year 2019-20 (April- “Vessels using LNG as a fuel should be comparatively more robust
March), METI said. in addressing the financial impact of any CO2 levy potentially imposed
In line with increased power demand, Japan’s spot electricity in the future,” Tahir Faruqui, director FueLNG and head of Shell
prices on the wholesale market rose to an all-time high of Yen 251/kWh Downstream LNG, said in the same statement.
on Jan. 15, although it then fell back significantly after METI approved a This comes at a time when decarbonization objectives in
special action to cap the imbalance tariff at Yen 200/kWh from Jan. 17 international shipping are gaining more traction after a fairly
onwards. — Takeo Kumagai successful transition to the International Maritime Organization’s global
low sulfur mandate.
Port of Singapore sees Asia’s first LNG enables a reduction of 99% in sulfur dioxide, 91% in particulate
matter emissions and 92% in nitrogen oxide emissions. LNG also
ship-to-containership LNG bunkering provides an initial solution to the challenge of tackling climate change.
■■CMA CGM ship fueled with 7,100 cu m of LNG from FueLNG Bellina An LNG-powered vessel emits up to 20% less CO2 than conventional
■■Firstship-to-ship operation for FueLNG Bellina marine fuel-powered systems, according to the statement.
■■IMO GHG emission cut targets supportive for LNG bunkering: FGE In April 2018, the IMO laid out its strategy on GHG emissions, aiming
to cut the shipping industry’s total GHG emissions by at least 50% from
Singapore—The Port of Singapore has set the stage for Asia’s first 2008 levels by 2050, and reduce CO2 emissions per transport work by
ship-to-containership LNG bunkering operation — which was at least 40% by 2030.
undertaken by global shipping company CMA CGM, Singapore’s In November 2020, the IMO’s marine environment protection
FueLNG and the Maritime and Port Authority of Singapore on March 24 committee strengthened the Energy Efficiency Design Index, or EEDI,
— paving the way for further development of LNG as a marine fuel in Phase 3 requirements.
the world’s largest bunkering port. Meanwhile, several industry sources on March 23 said separately at
“The use of more sustainable fuels is an important element of the the 12th International Fujairah Bunkering & Fuel Oil Virtual Forum 2021,
decarbonization strategy. As the shipping industry explores alternative or FUJCON 2021, organized by Conference Connection that LNG will
zero-carbon fuels, LNG is a viable transitional fuel,” Senior Minister of definitely play a significant role in the bunker fuel mix going forward
State for Transport and Foreign Affairs Chee Hong Tat said. due to its ready availability as well as an increasing LNG infrastructure
As part of the bunkering operation, the CMA CGM Scandola was at various ports worldwide.
fueled with 7,100 cu m of LNG from FueLNG Bellina, Singapore’s first There is also a genuine interest for LNG bunkering because of the
LNG bunkering vessel, marking the first simultaneous cargo and LNG newbuilds coming into the market as the economics of retrofitting a
bunkering operations for a ship in Asia, a joint statement read March 24. ship to run off LNG is much more expensive, an industry expert, said at
The CMA CGM Scandola is the first of six new 15,000-TEU LNG- the same event.
powered containerships, which CMA CGM Group has lined-up to be Also at FUJCON 2021, FGE Chairman Fereidun Fesharakai said that
bunkered in Singapore this year. These ships will be deployed on CMA IMO GHG emission cut targets were supportive for LNG bunkering.
CGM’s MEX 1 service between Asia and the Mediterranean. In order to achieve the 2050 target, global oil-based marine fuel
It is also the first vessel in Asia to conduct simultaneous container demand has to peak before 2025, while LNG demand should be
loading and discharging operations alongside LNG bunkering expanded swiftly, he said.
operations, shortening port stay time. LNG bunkering demand for non-LNG carriers is expected to be 15
Meanwhile, this is also the first ship-to-ship operation for FueLNG million tons by 2030 and will reach 27 million tons by 2040, reflecting
Bellina, the statement read. continued strong growth post-2030, he said. — Surabhi Sahu
FueLNG — a joint venture between Keppel Offshore & Marine Ltd. and
Shell Eastern Petroleum (Pte) Ltd. — aims to provide a total of about 30 to Judges quiz FERC on climate explanations
50 ship-to-ship LNG bunkering operations in 2021, after having performed
over 300 truck-to-ship LNG bunkering operations so far, it said.
in Rio Grande LNG approval orders
“We have a number of ships lined up for FueLNG Bellina’s next ■■DC Circuit weighs challenges to Brownsville, Texas, projects
bunkering operations, reflecting the strong demand for LNG bunkering ■■Question posed about remedy if court finds against FERC
in Singapore,” Chris Ong, chairman of FueLNG and CEO of Keppel O&M,
said in the same statement. Washington—The Federal Energy Regulatory Commission faced
questioning from appeals court judges March 23 about whether it
LNG bunkering potential adequately explained why it declined to consider the significance of
According to Shell’s 2020 LNG outlook report, global LNG bunkering greenhouse gas emissions associated with the Rio Grande LNG project
demand is estimated to grow to 30-50 million tons per annum (mtpa) in Brownsville, Texas.
by 2040. The probing from DC Circuit Court of Appeals judges came during
Singapore, for its part, is actively encouraging vessels which call at its oral argument March 23 on FERC orders approving the 27 million mt/
year Rio Grande project and the 4 million mt/year Texas LNG project, as Regulatory certainty
well as the recently scrapped 6 million mt/year Annova LNG project. At one point in the argument, Judge Douglas Ginsburg questioned
The three projects, which would be sited along the Brownsville Ship Rio Grande’s counsel, John Longstreth, about the appropriate remedy
Channel, were part of a wave of proposed LNG export facilities that — vacatur or remand — should the court reverse FERC on orders
cleared the FERC process in 2019 and which had been vying for offtake approving the project.
contracts generally needed to finance construction. If FERC were to vacate the certificate, Longstreth replied, “we
Also drawing scrutiny from the judges was the adequacy of would no longer have a permit in place and people looking to invest in
analysis of cumulative impacts for Texas LNG and how FERC assessed the project, customers looking to do business with it would be less
environmental justice impacts of the facilities and related ozone likely to deal with a project if it didn’t have a permit.”
emissions. Separately, in the Texas LNG case, justices questioned whether
there was adequate explanation of combined impacts of projects on
‘Why isn’t it cited?’ ozone pollution, even though that issue was more fully explored in the
During the Rio Grande argument, Chief Judge Sri Srinivasan Rio Grande order. — Maya Weber
pressed FERC about its decision not to use the social cost of carbon
tool to determine whether climate impacts of the project were LNG Shipping weekly: Atlantic and Pacific
significant.
At issue was whether FERC did enough to explain why it was not
rates increase
required to use the tool under a White House Council on Environmental London—Atlantic shipping and ballast rates increased to $32,000/day
Quality regulation, in light of Sierra Club’s argument that it should have and 75%, respectively, from $31,000/day and 50% during the seven
done so. days to March 23.
“Why isn’t it cited in the brief at all, because, especially in the Rio The Pacific ballast rate increased to 50% from 25% during the
Grande case, …the entire argument, is rested on the regulation,” same period, while the Pacific shipping rate was unchanged at
Srinivasan asked. $30,000/day.
Sierra Club Senior Attorney Nathan Matthews had argued that a In the Pacific, eight cold TFDE or DFDE tankers were marketed for
CEQ rule set a floor establishing that in the absence of other analyses, loading from now until the H2 April, sources said. The Maran Gas
an agency could not refuse to use a method generally accepted in the Delphi, Cool Explorer, Wilpride, Golar Seal, and a Gaslog vessel were
scientific community; and he said FERC, in a remand order on the mentioned among them.
Sabal Trail Transmission project, had conceded that the social cost of GDLNG was said to have issued a vessel inquiry for three voyages,
carbon was generally accepted. starting with an April 25 load from Withnell Bay. Re-delivery was heard
As to where FERC laid out its reasoning, Robert Kennedy, counsel to be around June 12, upon completion of discharge at Dapeng
for FERC, pointed to a case that was cited in the footnote of FERC’s terminal. Vessel capacity heard sought was 125,000 to 145,000 cu m.
rehearing order on Rio Grande. He also highlighted FERC’s view that Offers were heard due on March 24.
the social cost of carbon is not an accepted tool for use in project- Osaka Gas was also said by sources to be seeking to charter a
specific analysis. vessel for 8-12 months from May/June.
Judges also explored FERC’s findings that the Rio Grande project In the Atlantic, three TFDE or DFDE vessel were marketed for
did not disproportionately affect minority and low-income populations, Atlantic loading from now right until H2 April. The BW Paris and Gaslog
asking how FERC picked the geographic area and comparison Skagen were mentioned among them.
populations to study, in light of Sierra Club’s argument that FERC IOC was said to have issued a vessel requirement for one May 21-23
defined the affected community arbitrarily narrowly. Cameroon load, delivery to Dahej or Ennore. The minimum vessel
Kennedy said FERC’s use of the two-mile radius was capacity being sought was 145,000 cu m, while the charter period
consistent with an Environmental Protection Agency guideline sought was 30-45 days. Offers were due by March 30, with validity on
suggesting that a wide area could dissipate the impacts. FERC April 10, sources said.
reasoned that because all affected communities included in the Tokyo Gas was said to have issued a vessel requirement starting
zone were environmental justice communities, impacts will not around mid-May in the US Gulf. Four different fixed charter periods
be disproportionately concentrated. In addition, it looked at were sought — one, two, three and five years, followed by two optional
whether there were factors unique to communities that would one-year charters. A vessel capacity of 165,000 cu m or above was
amplify the effects. sought according to one source. — Wyatt Wong
SHIPPING RECAP AND DELIVERIES, MAR. 17 - MAR. 23

Delivered Delivered
Vessel Capacity Source Load date port/country date Commentary
Methane Lydon 145,000 Damietta 03/10/21 Zeebrugge/Belgium 03/21/21 ENI spot voyage
Volney
Golar Ice 160,000 Corpus Christi 02/28/21 Sines/Portugal 03/18/21 Gunvor-controlled vessel delivers cargo
Golar Snow 160,000 Idku 03/14/21 Rovigo/Italy 03/17/21 Gunvor-controlled vessel delivers cargo
Gaslog Chelsea 153,000 Arzew 03/14/21 Rotterdam/ 03/19/21 Glencore-controlled vessel delivers cargo
Netherlands
Trinity Glory 154,000 Darwin 03/06/21 Dangjin/Korea 03/19/21 Jera-controlled vessel delivers cargo
Maran Gas Coronis 146,000 Darwin 03/12/21 Jiangsu/China 03/22/21 PCI-controlled vessel delivers cargo
Maran Gas Alexandria 162,000 Corpus Christi 03/07/21 Dunkirk/France 03/22/21 Jera spot voyage
BW Tulip 173,000 Cameron 03/07/21 Mejillones/Chile 03/22/21 Total-controlled vessel delivers cargo
Flex Enterprise 172,000 Gorgon 03/14/21 Nagoya/Japan 03/23/21 Chevron-controlled vessel delivers cargo
Gaslog Santiago 155,000 Das Island 03/11/21 Dabhol/India 03/23/21 Trafigura-controlled vessel delivers cargo
Maran Gas Delphi 160,000 Corpus 02/11/21 Tianjin/China 03/24/21 Cheniere spot voyage
Grace Cosmos 150,000 Dampier 03/10/21 Dapeng/China 03/17/21 GDLNG spot voyage
Global Star 174,000 Gladstone 03/13/21 Zhoushan/China 03/23/21 Shell-controlled vessel delivers cargo
Dorado LNG 174,000 Gladstone 03/07/21 Ningbo/China 03/19/21 Shell-controlled vessel delivers cargo
Beidou Star 172,000 Sabine Pass 02/22/21 Kochi/India 03/22/21 Gunvor-controlled vessel delivers cargo
RECENT FIXTURES, MAR. 17 - MAR. 23

Vessel Capacity Note
Flex Volunteer 174,000 BP spot fixture mid-April US Gulf load. Hire rate heard was $40,000/day.
Ibri LNG 145,000 Gunvor fixture until Q1 2022. Hire rate heard was in the low to mid-$20,000s/day.
Pskov 170,000 Total fixture for up to 12 months starting around early May in India. Hire rate heard was in the mid-$50,000s/day.
Golar Arctic 141,000 Heard on subjects for mid-April Angola load. Hire rate heard was slightly less than low-$20,000s/day with 100% ballast bonus for redelivery.
Neo Energy 150,000 Gunvor one-year fixture. Hire rate heard in the $20,000s/day
Wilforce 156,000 Panocean spot voyage for mid-April Gladstone load. Hire rate heard at $26,000/day
Maran Gas Sparta 162,000 Socar sublet to BHP for mid-April NWS load, delivering to JKTC. Hire rate heard at low-$30,000s/day with 75% ballast bonus to hub
BW Pavilion Aranda 174,000 Total fixture for USGC load. Hire rate heard at $35,000/day
Source: S&P Global Platts
SUBSCRIBER NOTES
Platts to make several changes to its hydrogen methodology Rockies Hydrogen PEM Electrolysis Capital Cost $937 $1,439
After a period of open consultation, S&P Global Platts will make several changes Southeast Hydrogen PEM Electrolysis Capital Cost $924 $1,419
to its hydrogen assessments that will refine its treatment of capital expenses, as Southern California Hydrogen PEM Electrolysis Capital Cost $1,044 $1,603
well as adjust some operational parameters of the various production pathways. Upper Midwest Hydrogen PEM Electrolysis Capital Cost $980 $1,505
These changes stem from Platts’s quarterly methodology review of its hydrogen Japan Hydrogen PEM Electrolysis Capital Cost $1,800 $2,073
assessments, as well as industry feedback and a review of the assessment Alberta Hydrogen Alkaline Electrolysis Capital Cost $1,066 $1,025
methodology by an independent energy consultant. Chief among these Appalachia Hydrogen Alkaline Electrolysis Capital Cost $742 $941
changes is the adoption of a fixed charge rate for the calculation of capital Midcontinent Hydrogen Alkaline Electrolysis Capital Cost $720 $914
expenses, which is the product of a capital recovery factor and a project finance Northeast Hydrogen Alkaline Electrolysis Capital Cost $763 $968
factor. This change will more accurately incorporate inflation, depreciation, Northern California Hydrogen Alkaline Electrolysis $832 $1,056
return on equity, debt service, insurance as well as income and property taxes. Capital Cost
In addition, the capital costs ($/KW) for the electrolysis production pathways Northwest Hydrogen Alkaline Electrolysis Capital Cost $756 $959
proton exchange membrane (PEM) electrolysis and alkaline electrolysis will be Rockies Hydrogen Alkaline Electrolysis Capital Cost $731 $928
increased, from $900/KW for PEM electrolysis to $1,382/KW; and from $702/KW Southeast Hydrogen Alkaline Electrolysis Capital Cost $721 $915
for alkaline electrolysis to $891/KW. These changes will more closely align with Southern California Hydrogen Alkaline Electrolysis $815 $1,034
the technology-specific capital costs listed in the International Energy Agency’s Capital Cost
2019 Future of Hydrogen report (IEA FoH). Upper Midwest Hydrogen Alkaline Electrolysis Capital Cost $764 $970
This change will directly affect the Netherlands and US Gulf Coast electrolysis Japan Hydrogen Alkaline Electrolysis Capital Cost $1,404 $1,336
assessments, and indirectly affect Japan and the remainder of the North Other changes include an adjustment for plant efficiencies, based on
American electrolysis assessments, whose capital costs will change as follows: technology-specific assumptions listed in the IEA FoH report, as follows: steam
Electrolysis Capital Costs ($/KW) Current Proposed methane reforming (SMR), from 70% to 76%; SMR with carbon capture (CCS),
Alberta Hydrogen PEM Electrolysis Capital Cost $1,367 $1,589 from 63% to 69%; and alkaline electrolysis, from 65% to 66.5%.
Appalachia Hydrogen PEM Electrolysis Capital Cost $951 $1,460 The cost of stack refurbishment as a percent of capital cost will also be
Midcontinent Hydrogen PEM Electrolysis Capital Cost $923 $1,417 increased from 15% to 35% for PEM electrolysis, and from 15% to 45% for
Northeast Hydrogen PEM Electrolysis Capital Cost $978 $1,502 alkaline electrolysis, based on technology-specific production costs cited in the
Northern California Hydrogen PEM Electrolysis Capital Cost $1,066 $1,637 IEA FoH report.
Northwest Hydrogen PEM Electrolysis Capital Cost $969 $1,488 Platts will also adjust the percentage of Dutch peak and base electricity prices
used in the Netherlands hydrogen assessments from the current 80% base and CIF, CFR, DES and DAP.
20% peak, to 50% peak and 50% base. Among other items, these terms state the responsibilities for payments of
In addition, Platts will change its method for calculating carbon dioxide costs among buyers and sellers, including import customs duties and taxes. As
emissions, with relevance to the Netherlands (SMR, and SMR w CCS) and such, where Platts assessments state duty-unpaid terms including CIF, CFR,
California (SMR) assessments, by using the emission factor of 8.9 kg CO2/kg DES and DAP, these reflect bids, offers and trades wherein the seller is not
H2, as listed in the IEA FoH report. responsible for payment of import duties, including in the event that tariff
Finally, Platts will adjust the cadence of its methodology review from quarterly structures change subsequent to a reported trade.
to annual, to accommodate the annual release of the US National Renewable Should buyers wish to submit for publication bids for Delivered Duty Paid terms,
Energy Laboratorys Annual Technology Baseline report, which contains a Platts may consider these for publication and normalize them to a duty unpaid
number of the financial assumptions used in the revised hydrogen methodology standard for reflection in CIF, CFR, DES and DAP assessments.
as proposed. Please send any comments or questions to [email protected]
The changes will take effect on April 1, 2021. For written comments, please provide a clear indication if comments are not
Please send any comments to [email protected] and intended for publication by Platts for public viewing. Platts will consider all
[email protected]. For written comments, please provide a clear comments received and will make comments not marked as confidential
indication if comments are not intended for publication by Platts for public available upon request.
viewing. Platts will consider all comments received and will make comments
Platts proposes to change assessed period of LNG DES Brazil
not marked as confidential available upon request.
Netforward marker
Platts to launch new UK hydrogen assessments S&P Global Platts is proposing to change the assessed period of the LNG DES
After a period of public consultation, S&P Global Platts has decided to assess Brazil Netforward marker, effective June 1, 2021.
the cost of hydrogen production in the United Kingdom. This follows from an ongoing Platts proposal to change the loading period for
In its new suite of hydrogen assessments, Platts will consider the daily cost of the Gulf Coast Marker, which is used in the derivation of the DES Brazil
hydrogen production via three pathways: Autothermal reforming with carbon Netforward. Consequently, this proposal is contingent on the GCM proposal
capture (ATR w CCS), proton exchange membrane (PEM) electrolysis and becoming part of Platts methodology.
alkaline electrolysis.The assessments will launch April 1, 2021. Details of the proposed changes to the Gulf Coast Marker can be found here:
The UK hydrogen assessments will consider the feedstock costs alone, as well https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/031521-
as a second set of assessments that will include assumptions for capital platts-proposes-changing-loading-period-for-lng-gulf-coast-marker.
expenses (CapEx). Assessments will be made in GBP/kg and GBP/KWh. The DES Brazil Netforward currently reflects cargo delivery either in the third
The assumptions for ATR w CCS costs will be based on industry research, and fourth or fourth and fifth half-month cycles forward from the date of
including an H-Vision reported titled “Blue hydrogen as accelerator and pioneer publication.
for energy transition in the industry,” published 2019. This proposal would see the netforward assessed using the GCM assessment
Electrolysis assumptions will be based on the existing Platts methodology, and plus a freight period of 13 days using the assessed freight rate from the US Gulf
will incorporate the same changes as currently proposed in a separate Coast to Brazil (daily price database code LAUVH00).
methodology update. Going forward, therefore, the DES Brazil Netforward would represent cargoes
Daily inputs will include the month-ahead National Balancing Point assessment; being delivered to Brazil 13 days after the GCM loading period, or 43-73 days
the month-ahead UK GTMA base and peak power assessments, a UK water ahead of the date of publication.
price, and the quarterly EC carbon auction spot average as a proxy for UK Assessments that would be affected appear in LNG Daily, Platts LNG Alert pages
carbon costs. 2820, 2821, Platts Natural Gas Alert pages 1052, 1053 and under the Platts price
The assessments and their respective Platts symbols will be named as follows: database codes below:
Hydrogen UK ATR w CCS (GBP/Kg) HYUKA00 Assessments Code Monthly average
Hydrogen UK ATR w CCS (Incl. CapEx) (GBP/Kg) HYUKB00 DES Brazil Netforward Mo01 LEBMH01 LEBMH31
Hydrogen UK ATR w CCS (GBP/KWh) HYUKC00 DES Brazil Netforward vs ARA Fuel Oil LAARM01 LAAR003
Hydrogen UK ATR w CCS (Incl. CapEx) (GBP/KWh) HYUKD00 DES Brazil Netforward vs DES MED LNG LASWM01 LASW003
Hydrogen UK PEM Electrolysis (GBP/Kg) HYUKE00 DES Brazil Netforward vs Dated Brent LADBM01 LADB003
Hydrogen UK PEM Electrolysis (incl CAPEX) (GBP/Kg) HYUKF00 DES Brazil Netforward vs Henry Hub LAHHM01 LAHH003
Hydrogen UK PEM Electrolysis (GBP/KWh) HYUKG00 DES Brazil Netforward vs JKM LAJKM01 LAJK003
Hydrogen UK PEM Electrolysis (incl CAPEX) (GBP/KWh) HYUKH00 DES Brazil Netforward vs NBP LABPM01 LABP003
Please send any questions, comments or feedback to
Hydrogen UK Alkaline Electrolysis (GBP/Kg) HYUKI00
[email protected] and [email protected] by April 15,
Hydrogen UK Alkaline Electrolysis (incl CAPEX) (GBP/Kg) HYUKJ00
2021.
Hydrogen UK Alkaline Electrolysis (GBP/KWh) HYUKK00
For written comments, please provide a clear indication if comments are not
Hydrogen UK Alkaline Electrolysis (incl CAPEX) (GBP/KWh) HYUKL00
intended for publication by Platts for public viewing. Platts will consider all
Please send any comments to [email protected] and
comments received and will make comments not marked as confidential
[email protected].
available upon request.
intended for publication by Platts for public viewing. Platts will consider all Platts proposes to database North American LNG cargo cancellations
comments received and will make comments not marked as confidential S&P Global Platts is proposing to database the monthly North American LNG
available upon request. cargo cancellations reported to Platts by market participants, effective April 20.
Currently, data collected from the market about North American cargo
SUBSCRIBER NOTE: Customs duties in Platts European price assessments
cancellations is published monthly in a table on page 6 of Platts LNG Daily.
S&P Global Platts would like to clarify its publishing guidelines around customs
Under the proposal, Platts would continue to publish cancellations reported for
duties in contract terms ahead of potential changes in tariffs related to the UK’s
the period two months ahead of the month of reporting on the 20th of each
exit from the European Union.
month, with the latest information databased under a symbol code. In the event
Platts assessments reflect commodities traded under standard contract terms,
the 20th falls on a weekend or holiday, this information will be published the
typically including references to international commercial terms such as FOB,
next business day.
For example, on April 20, 2021, cancellations for June-loading cargoes would be loading 30-60 days forward from the date of publication, which Platts
reported under the new symbol code. understands to be broadly typical in the spot market. For example, on March 1,
Please send any questions, comments or feedback to the value of cargoes loading between March 31 and April 30 would be assessed,
[email protected] and [email protected] by March 29. while on March 2, the assessment period would change to between April 1 and
For written comments, please provide a clear indication if comments are not May 1.
intended for publication by Platts for public viewing. Platts will consider all This proposal follows an analysis of the market data published by Platts relating
comments received and will make comments not marked as confidential to LNG spot cargoes trading on FOB US Gulf Coast basis, which is the market
available upon request. and location GCM reflects.
The affected assessments appear in LNG Daily, Gas Daily Mexico, Platts LNG
Platts proposes changing loading period for LNG Gulf Coast Marker
Alert pages 2810, 2811, Platts Natural Gas Alert pages 1034, 1045 and under the
S&P Global Platts is proposing to change the loading period for the Gulf Coast
Platts price database codes below:
Marker to reflect LNG cargoes loading from the US Gulf Coast 30-60 days
Assessments Code Monthly average
forward from the date of publication, effective June 1, 2021.
LNG FOB GCM spot cargo Mo01 LGCSM01 LGGCM31
Platts is also proposing to discontinue the publication of the second, third and
LNG FOB GCM 1 Half-Month LUGCA01 LUGCA31
fourth half-month cycles from June 1, 2021, due to the proposed change in the
LNG FOB GCM 2 Half-Month LUGCB02 LUGCB32
assessed laycan of the GCM to a rolling loading window.
LNG FOB GCM 3 Half-Month LUGCC03 LUGCC33
Currently, Platts assesses LNG cargoes for loading from the US Gulf Coast in
Please send any questions, comments or feedback to
three half-month cycles, namely the second, third and fourth half-month cycles
[email protected] and [email protected] by April 9, 2021.
forward from the date of publication. The GCM spot cargo assessment
(LGCSM01) represents the average of the two half-month cycles, which
intended for publication by Platts for public viewing. Platts will consider all
comprise the first full month of loading, and rolls on the first business day of
comments received and will make comments not marked as confidential
the month to reflect cargoes loading in the following month.
Under the proposal, the GCM spot cargo assessment would reflect cargoes available upon request.
HYDROGEN
NORTH AMERICA HYDROGEN ASSESSMENTS, MARCH 23* JAPAN HYDROGEN ASSESSMENTS, MARCH 23*
Excluding Capex Including Capex Excluding Capex Including Capex
Production Pathway $/kg Change $/kg Change Production Pathway Yen/kg Change Yen/kg Change
Alberta (C$/kg) SMR w/o CCS 136.61 +5.24 305.29 +5.24
Alkaline Electrolysis 309.25 -7.69 499.45 -7.69
SMR w/o CCS 0.47 +0.03 1.69 +0.04
PEM Electrolysis 346.57 -8.62 619.86 -8.62
Alkaline Electrolysis 3.84 +2.21 5.22 +2.22
PEM Electrolysis 4.30 +2.48 6.28 +2.49 *Assessed previous day
Appalachia
SMR w/o CCS 0.33 +0.01 1.32 +0.01
NETHERLANDS HYDROGEN INCLUDING CAPEX
Alkaline Electrolysis 1.26 -0.08 2.27 -0.08 (Eur/kg)
5
Gulf Coast PEM
SMR w/o CCS 0.41 0.00 1.25 0.00 4 Electrolysis
Alkaline Electrolysis 1.39 +0.27 2.35 +0.27 Alkaline
PEM Electrolysis 1.55 +0.30 2.92 +0.30 Electrolysis
Midcontinent 3
SMR w CCS
SMR w/o CCS 0.37 0.00 1.26 0.00 (inc. carbon)
Alkaline Electrolysis 0.60 +0.02 1.58 +0.02 month ahead
2
PEM Electrolysis 0.67 +0.02 2.07 +0.02 SMR w/o CCS
Northeast (inc. carbon)
SMR w/o CCS 0.36 +0.01 1.42 +0.01 month ahead
1
Alkaline Electrolysis 1.26 -0.03 2.29 -0.03 11-Feb 17-Feb 23-Feb 01-Mar 05-Mar 11-Mar 17-Mar 23-Mar
PEM Electrolysis 1.41 -0.03 2.90 -0.03 Source: S&P Global Platts
Northern California
SMR w/o CCS 0.77 0.00 1.99 0.00 CALIFORNIA ELECTROLYSIS INCLUDING CAPEX
Alkaline Electrolysis 1.44 +0.01 2.57 +0.01 ($/kg)
PEM Electrolysis 1.61 +0.01 3.23 +0.01 30
Northwest
SMR w/o CCS 0.41 0.00 1.91 +0.02 N. Calif.
Alkaline Electrolysis 1.43 +0.35 2.46 +0.35 PEM
PEM Electrolysis 1.60 +0.39 3.07 +0.39 20
S. Calif.
Rockies PEM
SMR w/o CCS 0.39 0.00 1.32 0.00
N. Calif.
Alkaline Electrolysis 1.30 +0.29 2.29 +0.29 10 Alkaline
PEM Electrolysis 1.46 +0.32 2.89 +0.32
Southeast S. Calif.
Alkaline
SMR w/o CCS 0.41 -0.01 1.28 -0.01
Alkaline Electrolysis 1.07 -0.17 2.05 -0.17 0
10-Feb 17-Feb 23-Feb 01-Mar 05-Mar 11-Mar 17-Mar 23-Mar
Southern California Source: S&P Global Platts
SMR w/o CCS 0.64 0.00 1.81 0.00
NATURAL GASLNG
PEM Electrolysis 1.49 +0.10 3.08 +0.10 ($/MMBtu)
30
Upper Midwest
SMR w/o CCS 0.41 +0.01 1.36 +0.01
Alkaline Electrolysis 1.14 -0.20 2.18 -0.20
PEM Electrolysis 1.28 -0.22 2.78 -0.22 20
JKM
*Assessed previous day
TTF
Henry Hub
NETHERLANDS HYDROGEN ASSESSMENTS, MARCH 23 10
Production Pathway Eur/kg Change Eur/KWh Change

SMR w/o CCS 0.9552 +0.0110 0.0287 +0.0004
SMR w/o CCS (inc. Capex) 1.3999 +0.0136 0.0420 +0.0004
0
SMR w/o CCS (inc. Carbon) 1.1895 +0.0109 0.0357 +0.0003 11-Feb 17-Feb 23-Feb 01-Mar 05-Mar 11-Mar 17-Mar 23-Mar
SMR w/o CCS (inc. Capex & Carbon) 1.6342 +0.0135 0.0490 +0.0004
SMR w CCS 1.0518 +0.0121 0.0316 +0.0004 Source: S&P Global Platts
SMR w CCS (inc. Capex) 1.7764 +0.0164 0.0533 +0.0005
SMR w CCS (inc. Carbon) 1.0777 +0.0121 0.0323 +0.0003 ASSESSMENT RATIONALE
SMR w CCS (inc. Capex & Carbon) 1.8023 +0.0164 0.0541 +0.0005
The daily and month ahead hydrogen assessments are valuations that incorporate fixed
Alkaline Electrolysis (inc. Capex) 3.4059 +0.0153 0.1022 +0.0005 capital and operating costs and variable natural gas, electricity, and carbon prices. Details
PEM Electrolysis 2.9354 +0.0120 0.0881 +0.0004 on hydrogen methodology can be found at https://www.spglobal.com/platts/en/our-
PEM Electrolysis (inc. Capex) 4.0613 +0.0187 0.1219 +0.0006 methodology/methodology-specifications/electric-power/hydrogen-methodology

LNG Daily: Asia LNG: Prices Rise On Early Concerns of Suez Canal Situation, Off-Peak Demand

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LNG Daily: Asia LNG: Prices Rise On Early Concerns of Suez Canal Situation, Off-Peak Demand

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LNG DAILY

Volume 18 / Issue 58 / March 24, 2021

Asia LNG: Prices rise on early concerns of

KEY DRIVERS / MARKET HIGHLIGHTS

REPORTED ATLANTIC BIDS, OFFERS AND TRADES ($/MMBtu)

REPORTED APAC BIDS, OFFERS AND TRADES ($/MMBtu)

Apr-Jul DES Europe, which closes March 25. NEWS

ASIA/MIDDLE EAST ($/MMBtu), MAR 24 EUROPE ($/MMBtu), MAR 24

RECENT TENDERS AND STRIPS

SOUTH AMERICA ($/MMBtu), MAR 24

Pakistan is speeding up its plans to import LNG ahead of the

from US: cFlow December 2020

SHIPPING RATES, MAR 24 FREIGHT ROUTE COSTS, MAR 24 ($/MMBtu)

African country and its fledgling LNG industry. Trade flows

SHIPPING RECAP AND DELIVERIES, MAR. 17 - MAR. 23

RECENT FIXTURES, MAR. 17 - MAR. 23

Production Pathway Eur/kg Change Eur/KWh Change

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