--DES Northeast Asia

As temperatures this winter were similar to or slightly higher than previous years so far, gas demand for heating did not increase. A Japanese gas company said that gas sales by Japanese utility companies were similar to or slightly lower than previous years. As supply/demand was balanced, there was virtually no need to buy or sell in the spot market. Spot demand from China was also not seen. According to the China National Bureau of Statistics, natural gas production in November was 21.9 billion cubic meters, up 5.7% on year and LNG production was 2.81 mil mt, up 15.4%. On the other hand, LNG imports in November fell 4-5% on year. The proportion of natural gas in China for self-sufficiency was rising. If prices were not perceived to be low, Chinese player were unlikely to buy in the spot market. Buying ideas for February delivery from Chinese players were heard at $8.00 and below.

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

State-owned Indian Oil Corp (IOC) purchased one cargo at $9.19 for Jan 26-28 delivery to the 17.50 mil/year Dahej terminal in a DES based buy tender that closed on Wednesday. The company had been seeking a cargo for delivery to Jan 1-6 or Jan 26-28. End-users in India appeared to have scope to buy February delivery cargoes. However, crude prices softened recently, sending prices of oil products, competing products for LNG, lower. Under the circumstances, buying ideas for February delivery remained at $8.50.

--FOB Atlantic, DES Europe and South America

Mexico's Amigo LNG is expected to issue the Final Investment Decision (FID) for the 7.8 mil mt/year Amigo project as early as the January-March period in 2026. The project is slated to launch production in 2028. Amigo LNG already signed Sales and Purchase Agreements (SPA) with Malaysia's E&H Energy, Oman's OQ Trading, European Gunvor and Australia's Maquarie. Those SPAs covered annual supply of a combined 6.25 mil mt at least, accounting for 80% of the project's production capacity.