A Reuters news report Friday said Citigroup Inc. has entered the market of buying spot cargoes of liquefied natural gas and has won a tender for a cargo from Trinidad loading on Aug. 19-20.Citigroup also recently set up an LNG trading desk in Singapore, Asia's energy trading hub, with at least two traders covering the portfolio.
Demand for the super-chilled LNG is slow, creating opportunities for more spot cargoes on the market for intermediaries such as Citi.
Reuters said a flurry of tenders for cargoes from Trinidad has attracted players such as Citi and Morgan Stanley, who can load the cargoes aboard chartered tankers and sell them into lucrative markets elsewhere in the Atlantic.
"By developing its capabilities in this market, Citi is better positioned to help its clients more effectively manage their risks in the developing global natural gas market," Citi's Co-Head of Global Commodities Stu Staley told Reuters.
Europe has taken the lion's share of LNG this year as demand in Asia fell, leaving more left over in the Atlantic Basin. The U.S. has imported far less than was widely expected, with prices, pressured by over supply, remaining largely unattractive to shippers, Reuters said.
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