Mexico’s CFE Buys Two LNG Spot Cargoes From Germany’s RWEChou Hui Hong
Comision Federal de Electricidad, Mexico’s state utility, is scheduled to receive two spot cargoes of liquefied natural gas over the next 19 months from RWE AG, Germany’s second-largest utility.
The company awarded two shipments on May 22 to RWE, which will provide the LNG from the Middle East and Norway for delivery to the Manzanillo terminal on Mexico’s west coast, CFE said in a statement on its website yesterday.
The LNG will be regasified and sent through the Manzanillo-Guadalajara gas pipeline, according to CFE.
The utility bought 18 LNG shipments from Amsterdam-based Trafigura Beheer BV earlier this month at an average price of $15.84 per million British thermal units, after closing its tender to buy 30 LNG cargoes for delivery to Manzanillo.
CFE awarded eight shipments on May 17 to BP Plc and one cargo to Trafigura. The Trafigura shipment was priced at less than $15.84 per million Btu, according to the Mexican utility.
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 yesterday. The price in Southwest Europe was $11.50 per million Btu, the website shows.
Latin America’s LNG import capacity will increase to 49.2 million metric tons a year in 2020 from a projected 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.