Atlantic LNG: US fob prices edge lower

Spanish Market: Natural gas
06/12/24

Fob LNG prices for loadings in the US Gulf coast slipped on Friday, adding to losses posted over Wednesday-Thursday to end the week lower.

The Argus Gulf Coast (AGC) January fob price fell to $13.81/mn Btu, from $13.90/mn Btu a day earlier, and $14.16/mn Btu at the end of last week, following similar losses in European delivered markets.

But the price continued to track European des prices, as the inter-basin arbitrage for US January loadings held shut with European markets holding at a discount to Asia that was too tight to cover the additional spot freight costs — which have been buoyed by a recent small rise in prompt spot charter rates over this week.

The ARV3 prompt rate for US-northeast Asia by tri-fuel diesel-electric (TFDE) carriers was assessed at $14,000/d on Friday, up from $12,000/d a week earlier, while the corresponding ARV6 two-stroke rate rose to $28,500/d on Friday from $24,000/d.

US LNG production this week has been steady at six of the country's operational liquefaction terminals. But Texas' 17.3mn t/yr Freeport LNG export terminal experienced a trip at its first of three liquefaction trains on 4 December, because of an unspecified issue at a compressor system, according to a state regulatory filing by the facility. That said, the terminal's feedgas receipts quickly rebounded a day later to reach 2.02bn ft³ over the day — the most received by the terminal since 13 November. Freeport was nominated to take 2.12bn ft³ on Friday, though the terminal has historically taken less at times than it has initially nominated to receive.

Even with one day of downtime at a single train this week, Freeport's gas receipts were still greater than during the previous week, when deliveries over the opening three days of the week were also at levels suggesting one train of off line.

Deliveries to the planned 27.2mn t/yr Plaquemines terminal — set to be the US' eighth liquefaction terminal — have held at low levels, suggesting that the facility may still be only receiving enough gas to meet its on-site needs rather than fully starting liquefaction operations. The 174,000m³ Venture Bayou remained at the facility on Friday, where it has been since mid-November. Plaquemines received a cool-down cargo in late September, for which it has regulatory approval to re-export, as well as a further two cool-down cargoes that have not been delivered to the facility.

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

19/06/25

Sri Lanka revives plan to build LNG import terminal

Singapore, 19 June (Argus) — Sri Lanka has revived its plan to build the country's first LNG import terminal, power and energy minister Kumara Jayakody told the country's parliament on 17 June. The process to build the terminal is already underway and LNG supply is scheduled to begin in 2028, the minister said. The tender to build the import terminal was issued by state-controlled importer Ceylon Petroleum and state-run utility Ceylon Electricity Board, and the negotiation and project committees have been re-established to facilitate the eventual signing and finalisation of the project, the minister added. Sri Lanka plans to use LNG as a transition fuel despite its higher costs compared with coal, as the country looks to increase its renewables load. Sri Lanka had previously finalised an agreement with US operator New Fortress Energy to develop a new LNG terminal in Sri Lanka in 2021, but there have been no updates on the terminal since then. It is unclear if the current plan to build an LNG import terminal is linked to this floating storage and regasification unit (FSRU) agreement. By Joey Chan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil central bank raises target rate to 15pc

18/06/25

Brazil central bank raises target rate to 15pc

Sao Paulo, 18 June (Argus) — Brazil's central bank today raised its target interest rate by 0.25 of a percentage point to 15pc, the highest level since July 2006, citing a still "adverse and uncertain" global economic scenario. That is the seventh consecutive hike from a cyclical low of 10.5pc at the end of September last year. The bank had last increased the rate by 0.5 of a percentage point in May . "The [economic] scenario continues to require caution on the part of emerging countries in an environment of heightened geopolitical tension," the bank said, citing the US' "uncertain economic policies." The bank also said it increased the interest rate because Brazil's inflation remains above the ceiling of 3pc with a tolerance of 1.5 percentage points above or below. Annual inflation eased to 5.32pc in May . Central bank forecasts for 2025 and 2026 inflation remain at 5.2pc and 4.5pc, respectively, it said. "Inflation risks, both upside and downside, remain higher than usual," the bank said By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Market risks grow as Trump threatens Iran: Update

18/06/25

Market risks grow as Trump threatens Iran: Update

Updates with details throughout Washington, 18 June (Argus) — The prospect of wider escalation in the Middle East if the US joins Israel's attacks on Iran is affecting marine insurance, freight and middle distillate prices, even though the flow of energy commodities out of the Mideast Gulf so far remains unfettered. US president Donald Trump, in wide-ranging remarks throughout the day, hinted at a potential US role in Israel's bombing campaign against Iran. But he also suggested that a diplomatic solution is still possible, noting that he has yet to make a decision on whether to target Iran. Trump told reporters at around 3:10pm ET that he would shortly convene another meeting with his top national security advisers to discuss US options. Speaking from Tehran earlier in the day, Iran's supreme leader, Ayatollah Ali Khamenei, warned of "irreparable damage" to the US if it joins the attacks. Trump, in remarks to reporters at the White House this morning, said he presented an "ultimate ultimatum" to Tehran. And as for a potential US air raid on Iran, Trump said: "I may do it. I may not do it. I mean, nobody knows what I'm going to do." Speaking from the Oval Office in the afternoon, Trump said, "I'd like to make a final decision one second before it's due." Khamenei, in a televised address today, denounced Trump's "absurd, unacceptable rhetoric to openly demand that the Iranian people surrender to him". Iran will oppose any "imposed peace", Khamenei said. The escalating conflict in the Middle East is causing a surge in Europe-bound freight rates for medium range tankers loading in the US Gulf coast. Mideast Gulf middle distillate premiums are at multi-month highs. Additional War Risk Premiums in the Mideast Gulf could rise sharply in the coming days, as the number of insurance underwriters willing to commit at current levels appears to be shrinking. Some LNG carriers that have held off from transiting the strait of Hormuz in recent days have since sailed through or have approached the strait, while no carriers loaded in the Mideast Gulf have slowed from sailing via the strait. Few barriers to US participation Domestically and internationally, there is no significant pushback against a potential US involvement. But the isolationist wing of Republican politicians and media figures loyal to Trump, including former Fox New anchorman Tucker Carlson, is urging him to avoid involvement in an Israel-Iran war. Trump's extensive commentary suggests a perceived need to push back on criticism of his sudden eagerness to involve the US in another war in the Middle East after years of lambasting his predecessors for having done so. Trump told reporters this afternoon that "Carlson called and apologized the other day because he thought he said things that were a little too strong." The argument Trump says he is trying to make is that preventing Iran from acquiring a nuclear weapon may be worth a military intervention. "I'm not looking to fight," Trump said. "But if it's a choice between fighting or having a nuclear weapon, you have to do what you have to do." The US intelligence community assessed, most recently in April, that Iran has not restarted work on nuclear weapons despite building up enriched uranium stockpiles since 2018, when Trump terminated a functioning agreement that curbed that program. "I've been saying for 20 years, maybe longer, that Iran cannot have a nuclear weapon," Trump said today. Mixed messages on talks Trump claimed that Iran's government has reached out to him for a diplomatic solution and has expressed willingness to send a high-ranking official to the White House. The offer is "courageous", Trump said, but added, "I said it's very late to be talking." Iran's mission to the UN subsequently denied a request for a meeting at the White House. Iran after the Israeli attack canceled a round of talks scheduled to take place in Oman on 15 June. Khamenei, in his remarks today, hinted at a "suspicion" that the US diplomatic approach had been part of Israel's preparation for military strikes. "Considering their recent remarks, this suspicion is growing stronger day by day," Khamenei said. Trump said he began to consider the possibility of US military action in the immediate aftermath of the Israeli attack. "The first night was devastating, and it really knocked the one side off," Trump said. Russian president Vladimir Putin reached out with an offer to mediate in the Israel-Iran conflict, Trump said. The conversation took place on 14 June, according to the Kremlin. "I said, do me a favor, mediate your own," Trump said, referring to Russia's war in Ukraine. "Let's mediate Russia first. OK?" By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

TC Energy targets brownfield expansion growth

18/06/25

TC Energy targets brownfield expansion growth

Washington, 18 June (Argus) — Canada-based TC Energy intends to focus on expansions of its existing natural gas pipeline network in North America to serve growing demand for natural gas service until the mid-2030s, chief executive Francois Poirier said today. TC Energy has a $32bn backlog in capital projects and is looking at an additional $30bn of projects that may not all come to fruition, Poirier said. The company's focus is on increasing capacity through existing pipelines and pipeline corridors, he said, rather than pursuing greenfield projects that require entirely new routes. "Our view is that we're going to be able to prosecute all of that with brownfield expansions," Poirier said in an interview on the sidelines of the Atlantic Council's Global Energy Forum. "The industry has been quite innovative in finding the nooks and crannies to move gas around. So I don't see a need for a big greenfield pipeline until the mid-2030s." Pipeline developers since 2020 have prioritized brownfield projects, after permitting delays and lawsuits delayed or halted proposed pipelines across the eastern US, such as the now-canceled $8bn Atlantic Coast Pipeline. President Donald Trump has pushed to restart new pipeline development, and last month US midstream operator Williams said it was restarting work on the 124-mile (200km) Constitution pipeline and the Northeast Supply Enhancement project. Last month, TC Energy announced a $900mn expansion of its ANR pipeline system in the US Midwest, known as the Northwoods project. TC Energy will focus on those types of brownfield projects until at least the mid-2030s, Poirier said, when the company forecasts gas production in the Hayettesville and Permian basins will reach maturity. At that point, he expects there will more need to transport Appalachian gas to the US Gulf coast, where demand from LNG export terminals is set to increase. "Then the question is going to be, is it economical?" Poirier said. "It's going to depend on the price for Henry Hub [gas]. Right now, the Henry Hub price doesn't support a new greenfield pipeline." Data centers are among the largest drivers of demand growth, Poirier said. In the last three months, TC Energy has seen "quite an acceleration" in demand for gas transportation service from utilities serving that demand, he said. Gas-fired plants are still the fastest way to reliably serve those data centers even though such plants take 3-5 years to build, he said, because renewable power is intermittent and nuclear plants take at least a decade to build. "If you look at the 660 or so data centers under development and construction in the US, about two-thirds are within 50 miles of our pipelines," Poirier said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump talk of Iran attacks spreads market risks

18/06/25

Trump talk of Iran attacks spreads market risks

Washington, 18 June (Argus) — The prospect of wider escalation in the Middle East if the US joins Israel's attacks on Iran is affecting marine insurance, freight and middle distillate prices, even though the flow of energy commodities out of the Mideast Gulf so far remains unfettered. US president Donald Trump's repeated hints at a potential US role in Israel's bombing campaign against Iran prompted Iran's supreme leader, Ayatollah Ali Khamenei, to warn of "irreparable damage" to the US if it joins the attacks. Trump in remarks to reporters at the White House today said he presented an "ultimate ultimatum" to Tehran and said of a potential US air raid on Iran, "I may do it. I may not do it. I mean, nobody knows what I'm going to do." Khamenei in a televised address today denounced Trump's "absurd, unacceptable rhetoric to openly demand that the Iranian people surrender to him." Iran will oppose any "imposed peace", Khamenei said. "The harm the US will suffer will definitely be irreparable if they enter this conflict militarily," Khamenei said. The escalating conflict in the Middle East is causing a surge in Europe-bound freight rates for medium range tankers loading in the US Gulf coast. Mideast Gulf middle distillate premiums are at multi-month highs. Additional War Risk Premiums (AWRP) in the Mideast Gulf could rise sharply in the coming days as the number of insurance underwriters willing to commit at current levels appears to be shrinking. Some LNG carriers that have held off from transiting the strait of Hormuz in recent days have since sailed through or have approached the strait, while no carriers loaded in the Mideast Gulf have slowed from sailing via the strait. Few barriers to US participation Domestically and internationally, there is no significant pushback against a potential US involvement. The isolationist wing of Republican politicians and media figures loyal to Trump are urging him to avoid involvement in an Israel-Iran war. A group of Democratic senators on Tuesday circulated legislation to require Trump to ask for congressional authorization to use force against Iran, but senate majority leader John Thune (R-South Dakota) would not commit to allowing a vote on the resolution. "Dismantling Iran's nuclear program is what this is all about," Thune said in a televised interview Tuesday. "It can happen diplomatically, voluntarily, or can happen via force." There is also no unanimity among the other G7 leaders on the future course of conflict. The group in a statement on 16 June that Trump endorsed called Iran "the principal source of regional instability and terror." The Pentagon is ready to execute on any order by Trump, US defense secretary Pete Hegseth told a Senate panel today. Hegseth declined to say if Trump made any decision on an attack. Mixed messages on talks Trump claimed today that Iran's government has reached out to him for a diplomatic solution and has expressed willingness to send a high ranking official to the White House. The offer is "courageous", Trump said, but added that "I said it's very late to be talking." Iran's mission to the UN subsequently denied a request for a meeting at the White House. Trump said today that Russian president Vladimir Putin reached out with an offer to mediate in the Israel-Iran conflict. The conversation took place on 14 June, according to the Kremlin. "I said, do me a favor, mediate your own," Trump said, referring to Russia's war in Ukraine. "Let's mediate Russia first. Okay?" By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more