Croatia LNG receives first ever cargo from Egypt, 16th in total

The 2.6 Bcm/year capacity floating LNG import terminal in Croatia received its first ever cargo from Egypt on Nov. 10, its 16th imported cargo in total since it began operations at the start of this year.

Egypt is favorably located for LNG exports to the Mediterranean, with a journey time to Croatia of just three days. The Cool Explorer left Shell's LNG export facility at Idku on Nov. 7, according to cFlow, S&P Global Platts trade-flow analytics software.

The operator of the facility, LNG Croatia, confirmed the arrival of the Cool Explorer in a statement, saying the unloading of the cargo would continue until Nov. 12.

According to Platts Analytics data, eight of the cargoes sent to the Croatian terminal -- or 50% of the total -- came from the US.

Two each were supplied from Nigeria and Qatar, with reloads from both the Zeebrugge facility in Belgium and the Dunkirk terminal in France. One cargo was delivered from Trinidad, with the 16th from Egypt.

Total volume from the cargoes to date is the equivalent of around 1.4 Bcm of gas, according to the data.

Europe has struggled to secure LNG cargoes this year as Asian LNG prices retain a premium over European gas prices, drawing LNG to the higher-value Asian markets.

The Platts benchmark JKM spot Asian LNG price has surged in recent months, and was assessed Oct. 6 at a record high of $56.33/MMBtu. Prices have remained volatile through October and into November, with the JKM assessed at $27.45/MMBtu on Nov. 10.

Egyptian exports

Meanwhile, Egyptian LNG deliveries have picked up so far in the fourth quarter after a drop in exports during the summer due to strong weather-related domestic gas demand on higher power consumption for air conditioning.

Egypt is relatively exposed to spot LNG prices, so the fall in exports meant LNG producers were unable to enjoy the full benefit of the higher spot prices.

According to data from S&P Global Platts Analytics, Egypt exported only 15 LNG cargoes from its two plants in Q3 compared with 30 cargoes in Q1 and 22 cargoes in Q2.

However, deliveries picked up again in Q4, with eight cargoes already having reached their destination markets, and several others now on the water.

Exports are being made from both the 7.2 million mt/year Shell-operated Idku plant and the 5 million mt/year Eni-operated Damietta facility.

Damietta resumed operations in February -- after changes in the ownership structure -- having been closed for more than eight years after feedgas for the facility was diverted for use in the domestic Egyptian market in 2012 in the wake of the Arab Spring.