--DES Northeast Asia

Spot demand failed to surface in Northeast Asia, but lower temperatures are believed to give a boost to heating demand. The Meteorological Agency in South Korea on Jan 7 issued a cold wave warning in northern areas including the capital city of Seoul. The cold wave warning is issued when the lowest temperature is expected to fall below minus 12 degrees for two straight days or in case a steep drop in temperatures may cause a serious confusion. In Seoul, the highest temperature is forecast to drop below zero degrees from time to time in the upcoming week, a factor that is likely to keep heating demand solid. In Japan as well, there will be a likelihood of super heavy snow that could be experienced "once in 10 years" mainly on the Japan Sea side from Jan 11 onward. But a source at a Japanese city gas company said, "Freezing temperatures will be only short-lived like the year-end/new year period, and city gas sales will be more or less the same as normal years." Rather than that, gas sales in December fell short of the same month a year before, so that some players are hoping that lower temperatures will stimulate demand.

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

Indian state-run Gujarat State Petroleum Corp (GSPC) bought a cargo for Jan 20 to Feb 10 delivery to India at $9.28-9.30 through its DES tender closed on Dec 31.

--FOB Atlantic, DES Europe and South America

Turkey's state-owned Botas signed a Sales and Purchase Agreement (SPA) with Australia's Woodside on Dec 29. Botas will take delivery of approximately 500,000mt of LNG annually starting in 2030 for up to nine years. Cargoes will primarily be supplied from the 27.6 mil mt/year Woodside Louisiana Project.