LNG: Indonesia's PGN Allocates LNG to Meet Domestic Demand
Mar-12 09:46
Indonesia’s Perusahaan Gas Negara, a unit of state-owned Pertamina, is set to purchase some LNG cargoes allocated for export to meet domestic demand, Chief Executive Arief Setiawan Handoko said cited by Reuters.
- The cargoes are from the Tangguh, Bontang and Donggi-Senoro projects which supply LNG on a long-term basis to Japanese, Korean and Chinese companies.
- Indonesia was the seventh-largest global LNG exporter at 12.77m metric tons of LNG in 2024, according to Kpler data.
- Indonesia has a history of nationalising resources and imposing export restrictions. The government plans to delay LNG exports to meet rising domestic demand, diverting about 5m mtpa to the local market, Platts said in January. Initial assessments indicated a need for over 50 LNG cargoes for domestic use in 2025.
- PGN's main sources, including Corridor Block, were expected to decline sharply this year as fields mature, Handoko said.
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EQUITIES: Latest EU Bank Options
Feb-10 09:43
Couple of Bank Options:
- SX7E (20th Jun) 160/140ps, bought for 4.40 in 6k.
- SX7E (20th Jun) 177.5c, bought for 2.45 in 5k.
EGBS: Light Peripheral Outperformance vs Bunds This Morning
Feb-10 09:40
Light outperformance in 10-year peripheral bonds against Bunds, with European equity futures off Friday’s lows. The rally in European NatGas prices is likely helping to contain upside across core/semi-core EGBs this morning.
- The BTP/Bund spread is ~1bp tighter at ~108.5bps, after 106bps once again provided a floor to the spread last week. We look for a 2040 BTP to be launched via syndication in February, although with a decent risk of the transaction slipping into March.
- The OAT/Bund spread is a little tighter at ~71.5bps. However, medium-term political risks remain prevalent despite PM Bayrou surviving last week’s censure motions, after he forced the 2025 budget through the National Assembly using Article 49.3.
- Our Political Risk team highlighted last Friday that there is significant uncertainty surrounding the so-called 'spontaneous censure motion' that the PS intends to bring against the gov't this week. With the PS and presumably the rest of the leftist New Popular Front (NFP) alliance parties in favour, if the far-right RN backs the motion it would be enough to oust Bayrou.
OAT: Block trade
Feb-10 09:37
OAT Block trade, suggest buyer.
- OATH5 ~1.1k at 124.37.
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