Mexico’s CFE Buys Nine LNG Spot Cargoes From BP, Trafigura

Comision Federal de Electricidad, Mexico’s state utility, is scheduled to receive nine spot cargoes of liquefied natural gas over the next 19 months from BP Gas Marketing Ltd., a subsidiary of BP Plc, and Trafigura AG.

The utility awarded eight shipments on May 17 to BP and one cargo to Trafigura for delivery to the Manzanillo terminal on the country’s west coast, CFE said in an e-mailed statement yesterday. All nine cargoes will have average volume of 110 billion cubic feet and come from Qatar, Norway, Trinidad & Tobago, Brunei or Nigeria, according to CFE.

Trafigura will deliver its shipment around June 18, and CFE will decide soon to buy two more cargoes, according to the statement. The utility last week bought 18 LNG shipments from the Swiss trader at an average price of $15.84 per million British thermal units from its recent tender in April, which sought 30 LNG cargoes for delivery to Manzanillo.

Trafigura’s latest shipment was awarded at less than $15.84 per million Btu, and 12 companies participated in the bidding process, according to CFE.

The price of LNG spot cargoes for delivery to Northeast Asia during the next four to eight weeks was $14.30 per million Btu, Energy Intelligence Group said on the website of its World Gas Intelligence publication May 15. The price in Southwest Europe was $11.55 per million Btu, the website shows.

The LNG will be regasified and sent into the Manzanillo-Guadalajara gas pipeline.

Latin America

Latin America’s LNG import capacity will increase to 49.2 million metric tons a year in 2020 from 30 million in 2013, Anton Safronov, Total SA’s LNG origination director, said May 9 in Singapore.

Manzanillo, with a capacity of 3.8 million tons a year, started operations in May 2012, according to the website of Samsung C&T Corp. Korea Gas Corp., the world’s biggest LNG buyer, owns 25 percent of the terminal, and Mitsui & Co. and Samsung C&T split the remaining 75 percent, according to the website.

Mexico City-based CFE has two contracts with Repsol SA for a combined annual LNG supply of 3.18 million tons, according to data compiled by Bloomberg.

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