--DES Northeast Asia

In Northeast Asia, the temperatures were higher than normal in broad areas, and air-conditioning demand continued to grow. In the metropolitan area of Tokyo, the highest temperature was forecast to exceed 35 degrees for three days in a row. Under the circumstances, a source at a Japanese gas company said, "City gas sales are outstripping our plan amid hot and sultry weather." On top of that, a power utility in Japan saw its power demand during Jul 1-7 up 12.6%from the corresponding period a year before. At this point, higher runs at coal-fired power stations kept power reserve rates healthy. But spot demand for LNG could emerge if the ongoing high temperatures were prolonged. A source at a Japanese enterprise said, "This intense heat is beyond our expectations. I believe Japanese power utilities led by JERA should be in buyers' positions. As a matter of fact, some sources said several Japanese end-users including power utilities demonstrated appetite in spot cargoes for prompt delivery. On top of that, the temperatures in China rose above 40 degrees in many areas. Gas from Russia and Central Asia via pipelines were well supplied while power utilities in China gave priority to running coal-fired power stations, capitalizing on lower costs than LNG-fired power stations. But China National Offshore Oil Co, or CNOOC, apparently considered making spot purchases. In South Korea as well, Korea Gas Corp (KOGAS), eyed a possibility of buying spot cargoes, depending on prices.

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

Spot demand from Bangladesh was also brisk. Rupantarita Prakritik Gas Company Ltd (RPGCL) bought a cargo for Aug 14-15 delivery from European Vitol at $12.62 through the tender closed on Jul 7. In the tender, RPGCL had attempted to buy another cargo for Aug 3-4 delivery but this was apparently not awarded. As a result, RPGCL issued a new tender closing Jul 13 for three cargoes to be delivered on Aug 4-5, Aug 21-22, and Aug 28-29.

--FOB Atlantic, DES Europe and South America

Argentina's state-run IEASA has been issuing a buy tender to be closed on Jul 15. Through the tender, IEASA planned to buy a total of five cargoes to be delivered to the 6.10 mil mt/year Escobar terminal on Aug 9, 13, 17, 22 and 28 with a validity date of Jul 16.