--DES Northeast Asia

Although US President Trump announced on the Apr 21 local time that the ceasefire with Iran would be extended indefinitely, the US blockade of ports has continued since then, and Iran has been attacking cargo and container ships, making it unlikely that navigation through the Strait of Hormuz will return to normal anytime soon. In response, European natural gas prices, including the Dutch TTF (Title Transfer Facility) natural gas quotes have shown upward trend. In the DES Northeast Asia market, a labor dispute has erupted at the 8.9 mil mt/year Ichthys project in Australia, and market participants are on alert that operations at the project could be halted as early as May 7 due to a labor strike. Since Japan's JERA and Tokyo Gas as well as Taiwan's CPC are receiving term contract cargoes from this project, this is expected to lead to tight supply in the DES Northeast Asia market during the summer demand season. While a Western major pointed out that the key issue is whether this situation will drag on as long as the one in the Strait of Hormuz, a Japanese analyst, citing the labor dispute at US Chevron's export terminal in Australia in 2023, expressed concerns, saying that "Chevron managed to maintain operations by dispatching workers from other projects, but it remains doubtful whether INPEX, the operator of the Ichthys project, will be able to bring in workers from elsewhere." Although large-scale labor disputes occurred between August and October 2023 at the 8.9 mil mt/year Wheatstone project and the 15.6 mil mt/year Gorgon project in Australia--both primarily operated by Chevron--operations at the facilities continued, minimizing the impact on the DES Northeast Asia market.

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

India's state-run GAIL procured one cargo for May 5-20 delivery at $14.60-14.70 via its DES-based buy tender closed on Apr 21. A Japanese analyst commented, "it might have been able to procure at a low price, as the closing time coincided with a drop in market prices".

--FOB Atlantic, DES Europe and South America

Argentina's state-owned ENARSA picked up one of two cargoes that were originally sought in a buy tender on a DES basis closed on Apr 15. Spain's Naturgy sold the cargo for May 8-13 delivery near parity to the Dutch TTF (Title Transfer Facility) natural gas quotes. The remaining cargo for May 15-19 delivery was unawarded. In a bid to make up for the shortage of domestic gas supplies for heating, ENARSA is expected to procure a total of 24 to 25 cargoes this winter including the cargo awarded in the tender.