GLOBAL LNG-South Korean tender stirs up market

Fri Apr 21, 2017 5:23pm GMT
 

* Korea Gas Corp tender expected to net 10 cargoes -traders

* Market at odds over pricing

* Japan, China, Portugal, Spain, India show demand

* Immediate bullish signs outweigh concerns over Egypt

By Oleg Vukmanovic

LONDON, April 21 (Reuters) - Asian spot LNG prices jumped this week, buoyed by hopes Korea Gas Corp's new tender would match past buying sprees and by emerging demand from China and Japan.

Spot prices for June delivery rose to $5.70 per million British thermal units (mmBtu), a 20 cent jump over last week, but traders cited sharply divergent views on pricing, saying the disagreements contributed to market inertia.

Still, Korea Gas Corp's Thursday tender for June and July supply - set to close on April 26 - immediately stirred up bullish offers, rescuing an otherwise muted trading week.

The last time Kogas entered the market to buy two cargoes in December 2016, it ended up awarding up to 11.   Continued...

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