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Exxon focuses on LNG sales on Asian spot market

May 28, 2014
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<photocredit>Photo: Business Wire</photocredit>

Exxon Mobil Corp. has been involved in negotiations with customers in Asia regarding sales of liquefied natural gas (LNG) on the spot market, according to Bloomberg.

The company runs an LNG facility in Papua New Guinea and is ready to start selling on the spot, as demand for the fuel usually goes up during the summer. In an interview for Bloomberg, Exxon's project executive in Papua New Guinea, Decie Autin, explained that cargo could be shipped to customers every four to six days.

In fact, shipping has already started, as the first cargo has left the facility bound for Japan's Tokyo Electric Power Co., an e-mailed statement from Exxon explained. The next cargo is being prepared and will soon head for CPC Corp. of Taiwan, Autin said. The project is focused on customers from Asia and there are other businesses that Exxon has started talks with, she added. Sales on the spot will continue until Exxon is convinced it has secured "reliable sustainable sales."

Autin told Bloomberg that the project is expected to reach its full capacity over the next four to six weeks. Currently, deals have been closed with four major customers -- Tokyo Electric Power, CPC, Osaka Gas Co. and China Petroleum & Chemical Corp.

Meanwhile, data from the International Energy Agency suggests that the global LNG market will remain steady until at least next year. The total share of spot and short-term LNG sales rose to 27.4% last year from 25% in 2012.

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