--DES Northeast Asia

In the DES Northeast Asia market last week, the front delivery rose to around $15.35, hitting the highest level since last December. Supply worries about Russian natural gas boosted the Netherlands' TTF market, which in turn lifted the DES Northeast Asia market.

Ukraine attacked Russia with missiles produced by the US; geopolitical risks heightened, and the market for commodities, including natural gas, was rising overall. In the market, traders and portfolio players were looking for spot cargoes to cover their short positions. On Nov 20, French Engie bought a cargo to be delivered on Jan 10-12 at a premium of 4cts to the January contract of the DES Northeast Asia quotations from British Shell.

Despite a rise in prices, "it is more likely that winter in Asia may not be as cold as expected "(a Japanese trading house). The Japan Meteorological Agency announced on Nov 19 its three-month outlook, indicating mean temperature for the upcoming three months (December to February) would be normal.

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

Kuwait Petroleum Corp (KPC) closed a buy tender on Nov 20. Through the tender, KPC planned to buy one cargo for delivery to Kuwait on Dec 25-30. In Kuwait, gas demand in December is usually weak because demand for power receded. It is unusual for KPC to buy spot cargo around this time.

--FOB Atlantic, DES Europe and South America

Development costs for the 13.30 mil mt/year Plaquemines project, which US Venture Global is proceeding with, appeared to have exceeded the budget. Lack of workforces and materials after the pandemic has been seen worldwide. "The rising costs in building projects have become a common issue among developers" (a Japanese company).