Page 13 - AsianOil Week 43 2022

AsianOil NEWS IN BRIEF AsianOil

PetroChina takes delivery of international oil firm" but didn't name disruptions or a cold snap could lead to a
them.
spike in demand.
large LNG carrier from CSSC say how many drilling rigs were covered by restrictions in China could mute demand
The offshore drilling company did not
But analysts at Refinitiv said new COVID
shipyard the agreement. there, meaning more supply for Europe.
In Europe, S&P Global Commodity
COSL said the contract marked a new
PetroChina International has taken delivery stage of deepening cooperation between Insights assessed LNG prices on a delivered
of a large liquefied natural gas (LNG) COSL and international oil companies in ex-ship (DES) basis into northwest Europe
carrier from China's Hudong-Zhonghua various fields of oilfield exploration and (NWE) at $28.222/mmBtu on Oct. 27, a
Shipbuilding Group Ltd, the first of three development. discount of $10.50/mmBtu to December gas
tankers ordered under a joint venture with Back in September, in its half-year price at the Dutch TTF gas hub.
state shipping firms. 2022 review, COSL said it had continued This comes amid high storage levels and
The vessel Shaolin, named after the cultivating the Middle East market, and said as LNG cargoes wait to offload in Europe,
renowned Chinese kungfu style, is designed it had entered into the “5+2” year operation which have lead to TTF prices to trade
to carry 174,000 cubic meters of the super- contracts for three drilling rigs with "high- at a discount to JKM, said Kpler’s Rasidi,
chilled fuel, PetroChina International said end customers." referring to the benchmark Japan-Korea-
on its WeChat platform on Wednesday. As of 30 June 2022, COSL operated Marker price for LNG.
The carrier is one of three vessels ordered and managed a total of 57 drilling rigs, “For the first time in a while, we have
in 2020 costing a total of $600 million including 44 jack-up drilling rigs and 13 seen Asia being the premium leader over
by a joint venture between PetroChina semi-submersible drilling rigs. Europe,” said Toby Copson, global head of
International, Shanghai LNG and Cosco trading and advisory at Trident LNG.
Shipping Energy Transport Co. Ltd. “While not enough to be an enticing
Shanghai-based Hudong-Zhonghua, Asia prices edge down on ample arbitrage, it does show that we are slowing
a unit of China State Shipbuilding on demand across both basins when
Corporation (CSSC), is one of the country's inventories typically an aggressive bid period for
few shipyards capable of building large LNG procurement.”
carriers. Asian spot liquefied natural gas prices Dozens of ships carrying LNG have
"Under the complex global environment, (LNG) slipped this week, extending declines been circling off the coasts of Spain for
owning your own shipping capacity has as strong inventory levels and ample year- weeks, unable to secure slots to unload their
become increasingly important," Wu Junli, end cargo supply muted buying activity. cargoes as plants that convert the fuel back
President of PetroChina International was The average LNG price for December to gas are operating at maximum capacity.
cited as saying at vessel's delivery ceremony. delivery into north-east Asia LNG-AS They are likely to stay there until late
PetroChina, China's largest natural gas was $30 per million British thermal units November in anticipation of a rise in
producer, is also one of the country's top (mmBtu) this week, down $1, or 3.2%, European gas prices, industry sources said.
LNG importers and traders. from the previous week, industry sources The high number of LNG cargoes held
estimated. offshore has tied up much shipping capacity,
“Given fairly adequate storage in north- said Samuel Good, head of LNG pricing at
COSL secures $1.92bn worth of east Asia and ample cargo supply booked commodity pricing agency Argus.
for November and December deliveries,
“This has left firms struggling to secure
offshore drilling service deals in buyers in the regions have seen little vessels to sell U.S. or West African cargoes
into north-east Asia instead of Europe, even
urgency to buy additional cargoes at the
Middle East moment,” said Ryhana Rasidi, gas and LNG when there have been much higher prices
available in that region,” he added.
analyst at data analytics firm Kpler.
Chinese offshore drilling contractor China “Buyers are also likely monitoring the For spot LNG freight, rates in both the
Oilfield Services Limited (COSL) said weather for this winter, but there hasn’t basins fell with Pacific rates easing $46,000
Monday it had recently signed several long- been much rush to enter the spot market for to $426,000 per day, and Atlantic rates
term drilling rig service contracts in the now.” declining almost $10,000 to $472,750 per
Middle East. Asian buyers have been stockpiling day, according to Eleni Balomenou, analyst
The contracts are worth around on supplies of the super-chilled fuel at Spark Commodities.
RMB14bn ($1.92bn) in total, COSL said. ahead of the peak winter power and gas
COSL called the client a "first-class demand season, though unexpected supply

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