FINWIRES · TerminalLIVE
FINWIRES

Market Chatter: India's BPCL Seeks Rare JKM-Linked Spot LNG Cargo for November Delivery

By

India's Bharat Petroleum is seeking to buy a liquefied natural gas cargo for November delivery at a price linked to the Japan Korea Marker, a rare move for an Indian buyer as supply disruptions drive demand for alternative fuel, S&P Global reported on Wednesday, citing Platts.

The state-run refiner issued a tender for 3.1 to 3.8 trillion British thermal units of LNG, with a 10% operational tolerance, for delivery to its Dahej terminal in Gujarat. BPCL did not immediately respond to' request for comment.

Sellers are required to submit offers linked to December JKM prices, with delivery windows on Nov. 21, Nov. 23-24, Nov. 26 or Nov. 29-30. The tender closes Sept. 24 at 2:30 p.m. India time, with offers valid until 5:30 p.m.

The tender comes as India's LNG buyers navigate a tighter market following the closure of the Strait of Hormuz, a key global energy chokepoint. About 60% of India's LNG supplies came from the Middle East before the US-Iran war, according to S&P Global Energy CERA data. Disruptions to those flows have prompted Indian buyers to seek alternative supplies from other regions, supporting demand for spot cargoes in Asia.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

What else is happening in Commodities?

Commodities

SEBI Settles With Five Adani Group Firms Over Disclosure Violations

The Securities and Exchange Board of India (SEBI) has settled adjudication proceedings against five Adani Group companies, which paid a total of 15.1 million Indian rupees for alleged violations related to the disclosure of related-party transactions and audit and limited review reports.The settlement follows an examination by the Indian capital markets regulator into allegations and corporate governance issues highlighted in a January 2023 report of Hindenburg Research, including possible violations of listing regulations and the erstwhile listing agreement.Under the terms of the settlement, Adani Enterprises (NSE:ADANIENT, BOM:512599) paid 7.6 million rupees, while Adani Green Energy (NSE:ADANIGREEN, BOM:541450) paid 4.6 million rupees, and Adani Total Gas (NSE:ATGL, BOM:542066), AWL Agri Business (NSE:AWL, BOM:543458) and Adani Energy Solutions (NSE:ADANIENSOL, BOM:539254) paid 975,000 rupees each.The companies settled the cases without admitting or denying the findings of fact or conclusions of law.

BOM:512599BOM:539254BOM:541450BOM:542066BOM:543458NSE:ADANIENSOLNSE:ADANIENTNSE:ADANIGREENNSE:ATGLNSE:AWL
Commodities

US Power Update: Prices Swing as PJM Hits $85.08/MWh Intraday High

US electricity markets saw significant price swings, with locational marginal prices varying widely across regions as power demand shifted.ISO New England led the markets at 5 p.m. ET with a locational marginal price of $34.71 per megawatt-hour, compared with $22.39/MWh for Midcontinent Independent System Operator, which posted the lowest price at that hour.For intraday peaks, PJM Interconnection reached $85.08/MWh at 8:15 a.m. ET, while ISONE recorded the lowest LMP in the negative territory at -$0.45/MWh at 11 a.m. ET.The National Weather Service's Climate Prediction Center forecasts above-normal temperatures across most of the US from Sept. 30-Oct. 6, with near-normal readings in parts of the West.

Commodities

US Crude Oil Inventories Rise, API Says

Data from the American Petroleum Institute revealed Tuesday that US crude oil inventories increased by1.79 million barrels in the week ended Sept. 23, following a 7.14-mmbbl build the previous week, and compared with analysts' estimate of a 500,000-bbl decline, according to a Bloomberg-compiled survey.The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.