PNG Sells More Term Volumes While Marketing Expansion

ExxonMobil’s PNG LNG in September closed a tender to sell 1.3 MMt/y for five years starting in 2018. Buyers bid slopes between 11% and 12% of Brent for FOB and delivered volumes. Portfolio players were said to be more aggressive with offers higher than end-users because of savings from shorter shipping distances to their customers in the Pacific Basin than delivering Atlantic cargoes. Additionally, there is a limited supply of FOB cargoes in the Pacific and the main reason why PNG LNG cargoes have tended to attract a premium. The joint venture is expected to select the winners and finalize their sales and purchase agreements by the end of the year.

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