Gazprom takes Qatari LNG cargo to Argentina

The 170,000m� Pskov has loaded an LNG cargo at Qatar’s 77mn t/yr Ras Laffan complex and is bound for Argentina’s 3.7 mn t/yr Escobar import terminal.

The vessel is on long-term charter to Russia’s state-controlled Gazprom, which is scheduled to make a delivery to the Escobar terminal in Argentina on 25 August, shipping data showed. The Escobar terminal can only receive partial cargoes because of shallow water restrictions.

Gazprom is also scheduled to make a delivery to the 3.7mn t/yr Bahia Blanca terminal on 19 August, according to Argentina’s state-owned energy firm Enarsa.

The Pskov departed Qatar on 1 August and the shipping journey from the country to Escobar takes around 20 days.

Few LNG cargoes for Argentina originate from Qatar because of the shipping distance between the two countries and the usual availability of supply from production sites closer to Argentina. But Gazprom has delivered Qatari cargoes to Argentina previously and limited supplies available from Atlantic basin production sites at present has prompted companies to seek alternative sources.

The price of the cargo scheduled to be delivered by Gazprom to Escobar is 11.65pc of Brent crude. Brent prices have fallen in recent weeks, dropping to around $40/bl yesterday. But the percentage cost for the LNG cargo will probably be applied to Brent prices over a set period.

The Pskov vessel had recently been chartered to France’s EdF, shipping market participants said. But EdF has no scheduled deliveries to Argentina during August.

The Argus assessment for September des cargoes to Argentina was $6.06/mn Btu yesterday.

Source: Argus