Russia's Novatek resells T&T LNG to Chile
The reselling continues, but this time from Russia to Chile using Trinidad and Tobago (T&T) liquified natural gas (LNG).
Whereas T&T sells LNG at below-market prices to resellers in Canada, Spain and even the USA, which then re-sells to places as close as Barbados, on July 8, double cross-continental reselling occurred, by vendors about 12,000 kilometres away.
Novatek, a Russian natural gas producer that is building an LNG plant that will surpass Point Fortin-based Atlantic by 1.5 million tonnes per annum (mtpa), conducted its maiden run in the spot LNG market with a cargo it bought from Trinidad and sold to Chile.
Atlantic's full capacity is 15 mtpa while Novatek is building a 16.5 mtpa facility.
The cargo, aboard LNG tanker Solaris, left Point Fortin June 19 and delivered at Quintero port on Friday, according to Marine Traffic data.
The cargo passed south of South America and did not use the new Panama Canal, despite LNG pundits' predictions that the new, wider Panama Canal would become the preferred LNG tanker passage route.
"Russia's Novatek Gas & Power has supplied its first ever cargo of LNG, marking the company's first step into global LNG trading business," said Marine Link writer Aiswarya Lakshmi.
"The cargo was sourced from T&T's LNG plant in Point Fortin and delivered to the Quintero import terminal in Chile," Lakshmi said.
Novatek deputy chairman and commercial director Lev Feodosyev said: "This first LNG cargo is an important milestone for Novatek to enter the global LNG market."
He added: "After the launch of the first train of the Yamal LNG project we will enter the LNG market with our own volumes, and gaining spot trading experience is important for us."
Novatek is the operator of the US$27 billion Yamal LNG project in the Arctic which is expected to produce 16.5 mtpa of LNG at full buildout.
The first cargo from Yamal LNG's first train is scheduled to be shipped during the second quarter of 2017.