UK books fourth LNG cargo for first half of March

OREANDA-NEWS. The UK will receive a fourth LNG cargo in the first half of March, from the 216,200m? Al Gharrafa, but the pace of receipts is then expected to slow.

The tanker is on course to arrive at Milford Haven on 13 March, seven days after the 266,000m? Rasheeda. The Al Gharrafa has previously unloaded Qatari LNG deliveries to the UK at South Hook, but carried a cargo from Trinidad and Tobago to Dragon in November 2010.

A seven-day gap between South Hook receipts would be a longer interval than the brisk pace of deliveries in recent weeks. The terminal should receive four cargoes in 11 days between 24 February and 6 March, which has resulted in strong regasification.

Spot LNG demand from Asia-Pacific buyers has firmed in recent weeks because of lower spot supply availability from Asia-Pacific exporters. This may have contributed to fewer Qatari LNG deliveries to the UK.

South Hook sendout climbed to 29.2mn m?/d on 24 February-4 March, up from 24.8mn m?/d earlier this year, and peaked at 40.5mn m? on 3 March. Regasification slowed slightly to 36.9mn m?/d early today from 38.8mn m? yesterday.

The longer interval between deliveries could result in a slowdown in sendout over the coming week. South Hook stocks stood at just over 534,000m? yesterday morning, which would have left enough space for a full cargo from the Rasheeda by the start of today's gas day. And even if South Hook is full after the Rasheeda unloads, sendout could drop to about 19.5mn m?/d on 6-12 March and still absorb 216,200m? of LNG from the Al Gharrafa.

But with further Qatari deliveries to the UK expected, sendout may remain stronger than in previous years even it drops from its highs earlier this month.

The 266,000m? Al Samriya is heading for the UK having left Ras Laffan three days after the Al Gharrafa. It has delivered to South Hook on 23 of its previous 26 visits to the UK, with the other three to the Isle of Grain.

The emergence of Egypt as an importer could draw Qatari cargoes away from the UK from the end of March. Egypt is expected to start importing as early as this month, petroleum minister Sherif Ismail and the Idku LNG plant operator ELNG said this week. The Red Sea port of Ain Sukhna import terminal's proximity to Middle East exporters could encourage Egypt's suppliers to source cargoes from Qatar.