--DES Northeast Asia

It appears that multiple end-users still have room for spot procurement. Three major Japanese power companies are reportedly considering purchases for summer delivery. Separately, multiple market sources reported that Kansai EPC purchased July 11-20 delivery at a 2.5cts discount to DES Northeast Asia spot quotes through a tender that closed on Jun 4. European traders noted that while Korea Gas Corp (KOGAS) was believed to have met its July delivery demand, its inventories actually remain at record low levels, indicating it is struggling. CNOOC has lost gas production equivalent to five LNG cargoes per month due to an explosion accident at its Deep Sea No.1 gas production facility on Hainan Island. Therefore, the company currently appears to be seeking July delivery with the aim of securing alternative supply and replenishing inventories. It was also reported that the company had already secured two cargoes for July-August delivery last week.

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

Through a tender with offers closed on Jun 4, Pakistan LNG (PLL) purchased one super prompt cargo for delivery on Jun 6-7 from BP for $19.1337. In addition to BP, bids were allegedly received from France's TotalEnergies, Azerbaijan's state-owned SOCAR, China National Petroleum Corp (PetroChina), and Europe's Vitol. According to market sources, PetroChina was disqualified because its bid terms did not meet the requirements. As previously reported, PLL had sought to procure a total of two cargoes--one for delivery on May 12-14 and another for May 24-26--in a tender closed on May 7, and a total of two cargoes--one for delivery on May 12-16 and another for May 24-28--in a tender closed on May 11, but was unable to secure a successful bid. It is believed that three to four cargoes of Qatari gas have since arrived in Pakistan.

--FOB Atlantic, DES Europe and South America

Argentina's state-owned ENARSA have awarded nine cargoes to British BP and one cargo to PetroChina in a buy tender for July delivery closed on May 26. The awarded prices were at premiums to the Dutch Title Transfer Facility (TTF) natural gas quotes, though the exact levels were not immediately known. An industry source in South America said, "Market talks had it that ENARSA paid relatively small premiums, but it is not clear if the premiums were above or below 10cts." The tender called for a combined 10 cargoes for delivery to the 6.1 mil mt/year Escobar terminal on Jul 2, 5, 8, 12, 15, 18, 21, 25, 28, and 31.