Argentina issues new nine-cargo LNG tender

State-run gas distributor ENARSA and its procurement agent YPF have issued a new buy tender for nine cargoes for delivery to Argentina between late June and August, traders told ICIS on 18 April morning.

Offers are due on 26 April and the validity period ends a day after, traders invited to the tender said.

ENARSA and YPF issued the tender late on 15 April.

The buyers have requested five cargoes for delivery to the Bahia Blanca terminal, with the first delivery scheduled on 25-26 June.

The subsequent delivery windows are spread out between July and early August.

The remaining four cargoes are allocated for the Escobar terminal, with two delivery windows each in July and August.

The first delivery is on 10-11 July.

It could not be immediately confirmed why ENARSA and YPF decided to issue another tender two weeks after concluding the previous one. However, traders said the buying pattern is not unusual for Argentina at this time of the year, given that the June-August period is its peak demand season.

The Argentinean buyers may also be trying to avoid a price war with the northeast Asian markets, which typically have some LNG demand during the same months, traders said.

Argentina’s last tender was awarded in late March and prices averaged at the UK’s NBP benchmark plus a $0.40-0.50/MMBtu premium, depending on the delivery windows. ENARSA purchased 10 cargoes for Bahia Blanca and seven cargoes for Escobar through that tender.

Winners for the Bahia Blanca windows were UK-based BP, Russia’s Gazprom, trading companies PetroChina and Koch as well as Switzerland-headquartered trading firms Vitol and Trafigura, market sources said at the time.

Spain’s Gas Natural Fenosa and Brazil’s Petrobras were each awarded three cargoes for Escobar, while Trafigura won one slot.

Deliveries were scheduled from May through August. xieli.lee@icis.com