Gas Market Report.

(From Lloyds List)

NORTHWEST EUROPE: The large propane market in NWE remains buoyant even with at least 2 large cargoes scheduled to arrive first half October. A 20 kts October TOT was traded yesterday at $424.50 but the seller revised their number after this sale to the mid'high $430s on the back of strengthening crude and was later offered in the mid $440s as crude continued to gain strength. Question being asked at the moment is can these levels be maintained as the storages become full and no winter offtake seen yet? Or will at least one cargo have to go into petchems to absorb some of the surplus.

The large cargo butane market has stepped up in the last few days with deals being done in or equivalent to the mid $460s. With buyers still requiring butane to appease the continuing gasoline demand they are having to compete with exports into the East Med area and numbers could step up very quickly.

The coaster propane market has been almost devoid of activity over the last working week. Although refinery availabilities remain fairly tight , buying interest is equally constrained. A couple of deals are thought to have been concluded ex-east coast UK at fob levels in the $410 – $415 range. Since then sentiment would seem to be a little more bullish reflecting the recent higher crude prices with another deal fob east coast UK at $430. Demand for cif propane cargoes still appears to be quite thin with workable numbers thought to be somewhere in the $440s.

Coaster butane has not been too active either. Availabilities are fairly limited and fob numbers are now talked in a $425 – $430 range with one deal reported in the mid $420s fob east coast UK. Cif interest in butane is mainly for gasoline blending with talking numbers now in the $450s for the better quality cargoes.

MEDITERRANEAN: Refrigerated cargoes: One propane rich cargo loading Yanbu end September has been placed into NWE when two butane rich will proceed Turkey from Norway. Market on both grades is firming again with prices moving up and up following naphtha and crude price surges.

Coasters cargoes: Propane coaster trading remains very thin with no deals, whilst higher crude and swaps boosting fob'fca prices up to the low'mid $420s. A Greek refiner was looking for three cargoes of 2 kt in October and players are expecting demand to slowly increase.