PETRONAS GAS BHD (PGAS:KL) signs deal to lease LNG storage unit to Vitol
Petronas has signed a deal to lease a liquefied natural gas (LNG) storage unit in the country to commodity trader Vitol for at least two years, industry sources told Reuters.
Under the agreement, Petronas will rent one of its two 200,000-cubic-metre LNG storage units at Pengerang in southern Malaysia to Vitol, the sources said, declining to be identified as they were not authorised to speak with media.
The lease is for at least two years and will likely start in the second-half of 2019, one of the sources said, adding that the other unit in Pengerang would be set aside for domestic use.
Petronas did not reply to a request for comment from Reuters, and a Vitol spokeswoman said the company does not comment on commercial relationships.
The two storage units are part of Pengerang Terminal, a dedicated industrial terminal incorporated to undertake the development, construction and operation of facilities required for the handling, storage and distribution of oil and petrochemical products for the Pengerang Integrated Complex, which also houses an oil refinery.
The terminal includes regasification facilities comprising a regasification unit, the storage tanks and berths for loading and reloading LNG vessels.
Petronas Gas Berhad — majority-owned by Petronas — owns 65% of Pengerang LNG, while Malaysia’s Dialog LNG Sdn Bhd and Permodalan Darul Takzim own the rest.
Nearly all Middle East oil and gas bound for North Asia’s industrial powerhouses of China, Japan and South Korea pass through the Strait of Melaka and South China Sea. Pengerang is situated strategically in between at the southern tip of the peninsula.
Petronas LNG, a subsidiary of Petronas, and Vitol Asia signed a deal last year for long-term LNG supply from LNG Canada and from the global portfolio of Petronas, to start from 2024.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 17.22.
The projected upper bound is: 17.18.
The projected lower bound is: 16.43.
The projected closing price is: 16.80.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 24 white candles and 22 black candles for a net of 2 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 62.3189. This is not an overbought or oversold reading. The last signal was a buy 8 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 45.36. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -13. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 20 period(s) ago.
Rex Takasugi – TD Profile
PETRONAS GAS closed up 0.480 at 16.820. Volume was 20% below average (neutral) and Bollinger Bands were 129% wider than normal.
Open High Low Close Volume___
16.400 16.820 16.320 16.820 810,000
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 16.50 17.37 18.21
Volatility: 25 14 21
Volume: 2,283,680 839,136 975,016
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
PETRONAS GAS is currently 7.6% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume out of PGAS.KL (mildly bearish). Our trend forecasting oscillators are currently bearish on PGAS.KL and have had this outlook for the last 16 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.
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