--DES Northeast Asia

　 The Japanese Meteorological Agency announced on Jul 20 that the rainy season in the Kanto region including Tokyo had ended, 22 days later than the previous year and one day later than normal years. Tokyo experienced its first extremely hot day for the year on Jul 21 and air-conditioning demand seemed to be increasing sharply. According to data released by the Organization for Cross-regional Coordination of Transmission Operators (OCCTO), the wide-area power reserve margin for the Kanto region had dropped to 2%. However, TEPCO Power Grid apparently felt that it could meet demand through additional power supply. An Asian trader received no inquiries on spot cargoes for September delivery from major Japanese power companies such as JERA. "Japanese companies likely set up their supply/demand programs based on LNG consumption levels assuming maximum utilization of their LNG-fired power plants," the trader said. "They will probably assess whether additional spot procurement is necessary after checking consumption trends over the next two weeks following the end of the rainy season."

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

　State-owned Indian Oil Corp (IOC) awarded a buy tender for partial cargoes that closed on Wednesday. One cargo for Jul 28-Aug 12 delivery and the other cargo for Aug 7, or 10, or 12 arrival were heard awarded at $22.30-22.40 but some market players said only one of these cargoes was awarded. In India, there was LNG demand to produce fertilizers, thus buyers with essential demand for LNG may need to buy cargoes even at high prices. Under the circumstances, a European broker said, "Following a surge in spot prices, we are watching whether Indian end-users would refrain from buying cargoes amid high-price concerns or they would rush to buy cargoes amid expectations that prices would rise further," indicating that they hoped to gauge next movements by players in India.

--FOB Atlantic, DES Europe and South America

　 State-run Argentine ENARSA has not conducted spot procurement since a tender closed on Jun 24. While spot procurement of LNG is necessary to meet gas demand during winter in the country, it is understood that previously purchased cargoes can cover demand for the time being. It was also reported that one cargo was discharged at the 6.1 mil mt/year Escobar terminal in the country after ENARSA had purchased it from PetroChina via a buy tender closed on May 26.