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Torrent Power seeks 38 LNG cargoes via term import tender

by October 25, 2016 General

SINGAPORE (Reuters) – Indian private-sector power utility Torrent Power is seeking 38 cargoes of liquefied natural gas (LNG) for delivery over four years beginning April 2017, in what is likely to be the firm’s first import tender.

The firm is seeking offers for 22 cargoes to be delivered to Dahej LNG import terminal on India’s west coast between April 2017 and December 2019. It is also seeking 8 cargoes per year for delivery in 2020 and 2021, according to a copy of the tender document seen by Reuters.

Each LNG cargo is to be between 125,000-175,000 cubic meters, the copy of the tender document shows.

Sellers can offer the cargoes on either a fixed price basis, Brent-linked price formula or opt for a mix of both pricing options. The tender will close on Nov. 14.

The Indian utility, in October last year, signed a long-term capacity booking contract with Petronet LNG to use the latter’s Dahej LNG import terminal. Under the agreement, Torrent will be able to receive 1 million tonnes per annum of LNG from Dahej for 20 years starting 2017.

Torrent’s term tender comes at a time when most LNG buyers are issuing tenders for supplies starting from 2017 and beyond.

Egypt, which launched one of the world’s biggest import tenders for LNG earlier this week, is seeking 96 cargoes for delivery between 2017 and 2018.

The massive term import tenders may help lock in some of the surplus global LNG volumes, but new production slated to come online in Australia and the United States means the glut will persist, traders said.

(Reporting by Mark Tay; Editing by Himani Sarkar)