--DES Northeast Asia

In the DES Northeast Asia market last week, prices continued to move rangebound at around $13.00, following the previous week. A sign of buying interests from China was witnessed; at the same time, supply remained ample. Along with a wait-and-see mood for the Middle East situation, the market lacked a clear direction.

One or two spot cargoes for delivery to China were said to have been traded this week. According to a market source, the buyers for these cargoes were Chinese end-users. Of this, China Petroleum & Chemical Corp (Sinopec) might have bought a December delivery cargo, according to a Japanese company. Beijing Gas on Oct 9 bid for a cargo for mid-December delivery to the 5.00 mil mt/year Tianjin Nangang terminal at $13.25. A Japanese company perceived that Beijing Gas might have actual demand for the cargo.

Spot supply, however, remained abundant. Even though the price and buyer were unclear, Brunei LNG sold a cargo from the 7.20 mil mt/year Brunei project on a DES Northeast Asia basis for November delivery via a tender closed on Oct 8.

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

Indian state-run GAIL skipped buying a cargo for Nov 6-15 delivery via its tender closed on Oct 7. Sources perceived that offer levels were higher than GAIL's expectation. The offered levels were heard to be in the low $13's or lower.

--FOB Atlantic, DES Europe and South America

LNG demand was declining in Argentina. Argentina's state-run IEASA (formerly known as ENARSA) seemed not to purchase LNG cargoes for 2024 anymore. Further, due to oversupply, IEASA apparently canceled receiving four cargoes. This was believed due to progress in the development of the Vaca Muerta oil and gas field, boosting natural gas production in the country.