Trafigura boosts LNG volumes

Commodity trader Trafigura posted a rise in LNG volumes for the fiscal year ending September 30 as it continues to expand the business.

Volumes rose to 12.7 million tonnes compared to 10.3 million tonnes during the same period last year, Trafigura said in its annual report.

The Geneva-based firm has firm offtake deals with US LNG producers Cheniere and Freeport, but it also works in the spot market.

Trafigura says it managed to grow volumes, deliver to new markets and sustain
profitability despite substantial LNG supply overhang and significant demand destruction in early 2020 due to Covid-19.

The pandemic effects also contributed to record low prices, large scale cancellation of US cargoes, and a subsequent fall of LNG production from 2019 levels despite production capacity actually increasing, it said.

During the fiscal year, the vast majority of Trafigura’s US LNG output flowed to Europe, benefitting the firm’s growing European natural gas operation.

Coupled with favourable spreads, this enabled Trafigura to buildout storage positions and expand into new countries in Eastern Europe.

“In the Americas, it was a year of building up our Texas business and increasing the volume of gas traded in Mexico and Argentina,” the trader said.

Looking forward, Trafigura expects the LNG market to remain structurally oversupplied for at least another year.

“But the lack of final investment decisions on new projects, as a result of weak prices and Covid-19 uncertainty, is likely to result in a substantial tightening of both the LNG and US gas markets from 2022/23,” it said.

“Gas remains the critical transition fuel to achieve the decarbonization goals adopted in
the Paris Agreement; therefore, we expect the pace of activity and the number of participants in these markets to increase over the coming years,” Trafigura said.

Most Popular

Santos inks LNG supply deal with QatarEnergy’s trading unit

Australian LNG player Santos has signed a mid-term LNG supply deal with QatarEnergy Trading, a unit of state-owned LNG giant QatarEnergy.

Shell’s LNG Canada to ship second cargo

Shell-led LNG Canada is expected to soon ship the second cargo of liquefied natural gas from the Kitimat facility on the west coast of Canada, according to shipping data.

Argentina’s Enarsa to spend $567 million on LNG purchases

Argentina's state-owned LNG importer, Energia Argentina (Enarsa), will spend $570 million to purchase 22 liquefied natural gas (LNG) cargoes from BP and TotalEnergies this year.

More News Like This

Argentina’s Enarsa gets offers for new LNG cargo tender

Argentina's state-owned LNG importer Energia Argentina (Enarsa) has received six offers for its third LNG cargo tender in 2025.

Canada’s NuVista Energy enters LNG market with Trafigura deal

NuVista produces condensate-rich natural gas in the Montney formation in the Alberta Deep Basin, Canada. Under the agreement, NuVista will...

Trafigura appoints Richard Holtum as CEO

LNG trader Trafigura has appointed Richard Holtum as its new chief executive officer, effective January 1, 2025. Holtum will join...

Trafigura gets $560 million loan to supply LNG to Japan

Commodity trader Trafigura secured a loan worth about $560 million from two Japanese banks to supply liquefied natural gas...