Gunvor enters LNG agreement with Commonwealth LNG Gunvor has announced that it has entered into a strategic LNG marketing and gas supply agreement with Commonwealth LNG in relation to Commonwealth’s LNG export project in Cameron Parish, Louisiana, US.
Under the terms of the agreement, Gunvor claims it will support Commonwealth in securing binding LNG offtake and gas supply agreements for the full capacity of the facility.
In addition to this, Gunvor will commit to take up to 3 million tpy of LNG offtake from the facility.
Kalpesh Patel, Gunvor Co-Head of LNG Trading, said:
“In this highly competitive market, it is critical for companies – particularly ones pursuing an LNG greenfield project – to recognise their core competencies and strengths.“Commonwealth LNG’s engineering and procurement team is best in class. And, now, with the comprehensive support of Gunvor’s LNG and US Gas marketing team, Commonwealth LNG will excel not only at controlling costs and project execution, but also at commercialising their project and creating the lowest cost offering on the US Gulf Coast.”Paul Varello, Commonwealth’s President and CEO, added:
“We are very pleased to announce this strategic partnership with Gunvor, the most active LNG trader in the world.
“We believe Gunvor’s substantial capabilities in LNG marketing and overall market presence, coupled with Commonwealth’s strengths in engineering, construction and project execution create a dynamic combination that ultimately differentiates Commonwealth from every other US LNG project currently chasing FID.”According to the statement, Commonwealth LNG is expecting to take a final investment decision in 1Q21 and deliver its first shipments of LNG in 2Q24.
Asian LNG prices weighed down by oversupplied spot marketReuters has reported that Asian LNG spot prices continue to be negatively impacted by the growing supply glut.
As spot cargoes continue to flood into the market, demand growth has been muted by forecasts of a mild winter.
This has caused prices for LNG deliveries to Northeast Asia in January to fall to an estimated US$5.70 per million Btu – a decline of 20 cents from the previous week.
Likewise, prices for December deliveries have also fallen by 20 – 40 cents to approximately US$5 to US$5.20 per million Btu.
In addition to weak Asian demand for LNG, Reuters trading sources are citing the fact that European gas storage capacity has nearly been filled as a reason why spot cargoes are struggling to find landing spots.
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