PNG LNG issues single cargo tender

The ExxonMobil-operated US$19 billion PNG LNG project has reportedly issued a tender on Monday to sell a spot cargo scheduled to load late September. 

Bids for the tender are due on Wednesday, August 31, Reuters reports, citing trade sources.

According to the report, PNG LNG sold a spot cargo last week to Tokyo Electric Power Company (Tepco) at a price of US$5.4 per mmBtu.

Oil Search, the company owning a 29 percent stake in the project recently informed the venture is looking at multi-year contracts for spot sales of the chilled fuel as the project is producing above the nameplate capacity.

The PNG LNG project is producing 7.7 million tonnes per annum (mtpa), 12 percent above the nameplate capacity of 6.9 mtpa.

In the first half of 2016, eight spot cargoes were sold, six of which were delivered to Japanese customers.

LNG World News Staff