Diamond Gas International bid their first cargoes in the Platts Atlantic LNG Market on Close assessment process through a one-cancels-the-other order for Northwest Europe and Mediterranean LNG on Feb. 16.

During the physical MOC on Feb. 16, Diamond Gas International reported its first-ever bids into Northwest Europe and the Mediterranean, which were OCO, for a 3.5 TBtu cargo for March 10-12 delivery.

The two bids were initially priced at TTF March, pricing over Feb. 17-26, minus $2.20/million British thermal units and TTF Full month April minus $1.95/MMBtu. DGI then improved them throughout the window, ending with TTF March at minus $1.50/MMBtu and TTF April at minus $1.20/MMBtu by market close, for the respective bids.

The bids nominated Gate as a base discharged port, with the buyer able to nominate an alternative discharge port for delivery into Isle of Grain, South Hook, Dragon, Zeebrugge, Dunkerque, Montoir, Wilhelmshaven, Brunsbuttel, Eemshaven, Sines, Huelva, Bilbao, Sagunto, Barcelona, Cartagena or Mugardos.

“It’s good to see the activity in the [Atlantic] MOC, but the bids need to be about 20 to 30 cents more competitive to trade,” a Europe-based trader said.

“If the [LNG-TTF] spread moves narrower, then it will start to become attractive to sellers,” a second trader said.

Platts, part of S&P Global Energy, assessed the DES Northwest European marker for the first half of March at $9.672/MMBtu, a $1.05/MMBtu discount to the TTF March contract on Feb. 16. While the Platts second half of March assessment was at $9.472/MMBtu, a $1.25/MMBtu discount to TTF March.

Platts assessed the DES NWE marker for April at $9.452/MMBtu, a 92.50-cent/MMBtu discount to the TTF April contract.
Source: Platts