China’s ENN buys about 26 LNG cargoes for 2022-2023 delivery-sources
ENN LNG (Singapore) Pte Ltd, a unit of private Chinese gas distributor ENN Group, has agreed via a tender to buy about 26 cargoes of liquefied natural gas (LNG) for 2022 and 2023 to replenish stocks as new storage becomes operational, two trading sources said.
The cargoes were bought at premiums of about $1-2 per million British Thermal Unit over Title Transfer Facility, or TTF, a virtual trading point for natural gas in the Netherlands, on a delivered basis, said one of the sources.
The two-year agreement was in addition to a 10-year tender ENN issued in March, as ENN’s east China-based receiving terminal has since last August expanded in handling capacity thanks to a newly started pipeline to a provincial grid.
ENN picked TTF pricing instead of Japan Korea Marker (JKM) because the Netherlands-based TTF benchmark is more liquid and has more tools to hedge pricing risk than the latter, said the trader who has direct knowledge of the matter.
Source: Reuters (By Chen Aizhu and Jessica Jaganathan)