Industry sources said Japan’s Osaka Gas has offered 2 LNG cargoes from the newly-commissioned Freeport LNG project in the US for delivery into Europe.
The global LNG market dragged to multi-year lows partly due to a weaker Chinese economy and mild weather in Japan. Thus, sellers in Asia are forced to seek alternative markets.
For delivery into Europe, the cargoes have been offered by Osaka Gas between July 5 and 13 and November 9 and 17. Bids are due by January 22.
Loaded in December, Osaka Gas’ first cargo from Freeport did not go to Japan. The Freeport project shipped its first LNG cargo for Train 1 from Quintana Island in Freeport, Texas, in September 2019.
JERA Co and Osaka Gas are expected to each lift 50 percent of Freeport LNG Train 1’s total contracted capacity of about 4.64 mtpa.
Up from 7 in December, 11 cargoes are expected to be loaded by Freeport in January. With the commencement of gas deliveries from BP under a 20-year tolling agreement, Freeport has started commercial operations for the second liquefaction train, the company said on January 17.
