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ENARSA yet to receive formal notice of cancellation

04 May 2012 09:57:48 | lmd

Argentina's state-run LNG buyer ENARSA has not received a formal notification from Repsol that the Spanish company will not deliver on nine contracted cargoes it had won in a previous tender.

However, ENARSA is pursuing additional import volumes amid the shortages the company faces heading into the southern hemisphere winter, a source in Argentina told ICIS.

Repsol has not decided on plans for the nine remaining cargoes this year in Bahía Blanca and is assessing it internally, ICIS understands.

ENARSA has been bound by a tender process to secure LNG cargoes, but the state-run gas incumbent has not launched a formal call to market and has been negotiating one-on-one with companies for its future import needs.

"Sellers have been willing to supply to Argentina," the source said.

ENARSA has yet to firm up a commitment for extra volumes over the winter, where the government-backed company could be facing a shortage of up to 11 cargoes to Bahía Blanca until the end of August.

However, the source close to ENARSA said that the ongoing negotiations are encouraging and the feeling is positive for near-term procurement.

The source did not provide a DES (delivered, ex-ship) price that ENARSA is willing to pay for prompt cargoes and declined to comment on any details of regional co-operation with Brazil's Petrobras, which has been importing higher-than-normal LNG volumes in April and May.

In Brazil, the Petrobras-controlled 126,000m³ LNG Capricorn has left Petrobras's Guanabara Bay terminal on 3 May for what appears to be delivery for ENARSA. The tanker is scheduled to arrive at ENARSA's Escobar terminal on 5 May, according to ship tracking data.

Petrobras has authorisation to re-export cargoes from its terminals and has sold cargoes from Brazil three times since the government approval.

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