--DES Northeast Asia

Demand in Northeast Asia failed to pick up at this point, but demand in China is expected to grow in the long term. China maintains an economic growth rate of around 5%, so that gas demand from the industrial sector is basically tracking an upward trend. In addition, demand for transportation fuel for trucks and city gas in metropolitan areas led by Beijing is also projected to increase, potentially pushing up China's LNG demand next year by nearly 8 mil mt from this year. On top of that, imports of Russian gas via pipelines already reached the peak for supply capacity constraints. With little scope of boosting gas imports from Russia, the increase in demand should be satisfied with domestic gas and LNG. But the country is already meeting half of gas demand with domestic supply while development of gas fields is seen on the right track. PetroChina currently produces 135 mil cubic meters of natural gas per day, posting a steady increase in the past months. Any increase in LNG demand is likely to fall short of forecasts if concerns remain unabated over a slowdown in the economic growth amid prolonged US-China trade friction.

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

State-run Oman LNG apparently awarded one cargo for Nov 17-18 delivery to Northeast Asia at parity to DES Northeast Asia spot quotations in a sell tender on a DES basis closed on Nov 19, though buyer details were not immediately known. The cargo also could have been traded on a DES India basis for Jan 17-19 delivery.

--FOB Atlantic, DES Europe and South America

State-run Angola LNG issued a new DES sell tender closing Nov 26 with bids valid until Nov 27. Offered in the tender was a cargo to be delivered to Europe, South America or Mediterranean on Dec 14-26. They designate destinations within nearby areas."