--DES Northeast Asia

In Japan, a sharp rise in temperature was forecasted for the next week, raising expectations for solid demand for power. On Jun 16, in the wide range of areas from Tokyo, Nagoya, and Osaka, the maximum daily temperature would rise beyond 30 degrees Celsius; in Nagoya on 19, it might exceed 35 degrees; and in the inland area, such as Gunma and Saitama, it could reach 40 degrees. Power outlook, surveyed by Rim Intelligence Co, indicated the volume of power load in June was up 0.9% from a year earlier as of Jun 10, but it might grow further. At the same time, "It is not clear to what extent LNG usage grows with high temperatures. Power utilities would handle them by using long-term contract cargo first, given the high spot prices," a European trader said. Indeed, utilities have been building their LNG inventories smoothly, which made them unlikely to rush to buy cargoes. Moreover, firm outputs from photovoltaic and wind power plants have curbed gas demand for power at this moment. In China, temperatures rising above usual in the southern area have put gas demand for air conditioning as well as demand for inventory on the track to recovery.

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

State-run Indian Oil Corp (IOC) had attempted to buy a cargo for Jul 8-14 delivery to the 5.00 mil mt/year Dhamra terminal on Jul 8-14 via its tender closed on Tuesday and had received offers in the low $12's from sellers. Nevertheless, IOC eventually skipped buying the cargo. A Japanese company commented, "As LNG prices are rebounding, it is hard for Indian importers to buy spot cargoes. They will change their plans, using other fuels.".

--FOB Atlantic, DES Europe and South America

Bulgarian state-run Bulgargaz appeared to have bought June delivery via a tender. While the seller was allegedly German RWE, details, including the closing date, prices, and FOB/DES basis, were unknown.