--DES Northeast Asia

In the DES Northeast Asia market last week, front month delivery prices moved around $13.80-14.10, renewing a high this year. The Ukraine incursion into Russian territory rose the Netherlands' TTF market, which in turn drove the DES Northeast Asia market higher.

In Japan, heat waves continued, such as the daily high temperature reaching 35 degrees Celsius for 20 consecutive days in Nagoya, recording the longest record. However, outputs from solar power stations as well as nuclear power stations were smooth. Moreover, most factories, such as automobile-related ones, halted operations last week due to the Obon holidays, reducing power and gas demand. As a result, despite a rise in prices, most Japanese energy utilities seemed to have scant interest in spot procurement.

Typhoon No.7 hit the Tokyo area on Aug 16. The Japan Coast Guard advised ships anchored in the Tokyo Bay to leave and requested shipping companies to avoid entering the Bay. The 210,134cbm Q-Flex tanker "Al Safliya" that had berthed the 22.90 mil mt/year Futtsu terminal owned by JERA on Aug 14 stopped a discharge operation before completion and sailed away outside the Tokyo Bay on Aug 15. The 145,400cbm conventional tanker "Cygnus Passage" was originally scheduled to arrive at the 10.80 mil mt/year Negishi terminal owned by Tokyo Gas on Aug 15 but the arrival was postponed to Aug 17 due to inclement weather.

--FOB Middle East, DES South Asia and the Middle East

Indian state-run GAIL issued a new buy tender closing on Aug 14. Through the tender, GAIL planned to buy two cargoes to be delivered to the 5.00 mil mt/year Dabhol terminal on Oct 10-15 and Oct 24-30. GAIL had closed another buy tender for one cargo for Sep 20-30 delivery to the 7.50 mil mt/year Dahej terminal on Aug 12 but the results were not reported at the moment.

--FOB Atlantic, DES Europe and South America

Ukraine's incursion into Russian territory has been continued; some market participants showed concerns over supply disruption of Russian natural gas due to the intensified battle between both countries. Reflecting the concerns, TTF prices has been rising. The actual pipeline gas inflow via Sudzha in west Russia, however, has been stable. Ukraine had no intentions to stop Russian gas supply, as well.