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Tuesday, 29 November 2016

EGAS locks in 2017 natural gas needs

EGAS locks in 2017 natural gas needs as Glencore, BB Energy, Gunvor and Vitol win “mega tender”: “State-run EGAS, which issued the import tender in late October, sought 96 cargoes for delivery in 2017 and 2018 in total, with an option to buy 12 additional cargoes in 2017. [EGAS] has now probably secured all of its 2017 requirements, and just six cargoes for 2018, traders said. It was not immediately clear why it did not seek more cargoes for 2018 delivery,” Reuters writes. We’d suggest the low appetite for 2018 deliveries suggests the Oil Ministry believes Eni will meet its 4Q2017 production target for Zohr — and note that Reuters says EGAS is probably paying USD 7.50 per mmBtu for the January-March cargo, leaving us feeling rather unsympathetic to folks in industry who think they should be paying less than the USD 4.50-7.00 per mmBtu they’re now shelling out.

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