No impact on LNG exports, NWS condensate cargoes after earthquake off Russia: sources

Australian LNG exports and North West Shelf condensate cargoes were not seen impacted by the powerful earthquake that struck off Russia's Far East, according to market participants on July 30.

The Pacific Tsunami Warning Centre added Australia to its advisory for tsunami warnings after an earthquake struck off Russia's Kamchatka Peninsula on July 30. However, Australia's Bureau of Meteorology said there was no tsunami threat to the country, according to a social media post on X, formerly known as Twitter.

The Centre said in its advisory that waves reaching 0.3 meters to 1 meter are possible along the Australian east coast.

Australia is among the world's largest LNG exporters. A potential disruption of supplies from the country could impact LNG market fundamentals and prices. However, no immediate impact was heard.

On July 30, the Centre also issued advisory warnings related to the tsunami to several other countries and regions. These include Japan, Hawaii, parts of Southeast Asia such as the Philippines and Indonesia, Guam, parts of the west coast of North and South America, Alaska, and the Pacific Islands.

Platts, part of S&P Global Energy, assessed the September JKM, the benchmark price for LNG cargoes delivered to Northeast Asia, at $11.899/MMBtu on July 29, up 27.3 cents/MMBtu, or 2.35%, day over day.

In the Asia-Oceania sweet crude oil market, both suppliers and buyers of Australian ultra-light crude indicated that the earthquake poses no threat to the loading and delivery of August-loading North West Shelf condensate cargoes.

Chevron and BP were heard to have sold their NWS cargoes loading over Aug. 10-14 and Aug. 27-31, respectively, to ExxonMobil and South Korea's Hanwha TotalEnergies at discounts in the high-$1s/b and at an equivalent of discounts in the $1s-$2/b to Platts Dated Brent crude assessments, FOB, respectively.

"The August NWS condensate logistics are on schedule... I don't expect any delays or troubles in deliveries," said a feedstock management source at Hanwha TotalEnergies.