Gas Market Report.

(From Lloyds List)

NORTH WEST EUROPE: The large propane cargoes, despite the time of year, have continued to strengthen on the back of higher crude and naphtha and lack of available cargoes for early April. With petchems having a demand for propane and calling in cargoes from suppliers this has left buying interest for cargoes struggling to obtain offers on the 20 kt market.

Consequently the market has been bid up to the $570s without result. There have been handy parcels offered around these numbers but without meeting the criteria required then they have been largely ignored. A tender from a petchem for 2 x 20 kt cargoes second half April was filled on a p and c basis which may even extend the tightness in the market to second half April.

Rumours of Med cargoes being delivered into N.W.E. has not yet had any effect on pricing but if more of these cargoes appear then we could see the prices coming off sooner than expected.

Butane large cargoes remain untalked and untested at the $545 -- 555 level with any requirement being met by contract deliveries which appear to be absorbing any length in the market.

The propane coaster market is once again on the quiet side. Buying interest is limited while product is available throughout the area. The FOB level is talked in the $520s while the CIF level is talked in the $565 -- 570 range and this due the a tight shipping.

On the butane coaster market activity remains in the ARA -- North France area or to cover contractual deliveries in the south. The FOB level is talked around the $520s depending of course on the quality and normal butane content. The CIF level is talked in the $560s.