South Korea's state-owned importer Kogas is seeking a swap, offering two July cargoes on a fob basis from the Atlantic. In exchange, the firm is seeking two deliveries between August and December on des basis to the Pacific.
The tender will close on 4 June.
Kogas was last in the market for up to 10 cargoes for delivery between June 2025-March 2026, through a tender closed on 17 April. The tender was likely partially awarded, with transactions at up to a 20¢/mn Btu discount to a northeast Asian spot LNG price. The firm was also seeking spot deliveries bilaterally, in particular for May and June, a month ago.
Kogas is likely trying to restock its gas inventories in preparation for the approaching summer season.
The last purchase for delivery to South Korea was sought by fellow state-owned utility Korea Southern Power (Kospo). The firm likely purchased a cargo for delivery over 4 or 5 July at a 15-19¢/mn Btu discount to a northeast Asia LNG spot price through a tender closed on 26 May, traders said.
There have been no reported deals for August delivery yet.
This swap tender has surfaced at a time when there has been a dearth of outright buying interest from the northeast Asian region, despite the approach of summer. Some Chinese participants could be offering an unspecified number of prompt deliveries, although further details are unclear.
But some traders also pointed out the possibility of a warmer-than-expected summer, which could lift demand in the longer term. There are also expectations that South Korea's summer would be warmer than expected, but there is limited imminent need for more spot cargoes.
The ANEA, the Argus-assessed price for deliveries to northeast Asia, for first and second-half July last stood at $12.075/mn Btu and $12.035/mn Btu on 2 June, lower by 3¢/mn Btu and 13¢/mn Btu respectively from a week earlier.
