--DES Northeast Asia

　 Although China National Offshore Oil Corp (CNOOC) and China National Petroleum Corp (PetroChina) have been building up their inventories, buying interest appears to be generally subdued as DES Northeast Asia prices remain above $20.00, while the gap with the domestic onshore LNG market has widened. As of Jul 29, domestic LNG prices by truck stood at 5,620 yuan per metric ton, which is estimated to be equivalent to the low $13 level per million British thermal units (mmBtu). In addition, the Deep Sea No1 gas production facility on Hainan Island, which was forced to suspend operations in May due to a fire, is expected to resume production around fall. As a result, a European analyst pointed out that the operator, CNOOC, may curb spot purchase volumes for delivery starting in October.

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

　 Bangladesh's state-owned Rupantarita Prakritik Gas (RPGCL) issued a buy tender for August delivery and already closed the tender on Jul 31. The tender was believed to have been already awarded. A total of three cargoes for Aug 10-11, 11-12 and 15-16 delivery were subject to the tender, and of these, European Vitol was said to have awarded one cargo for Aug 15-16 delivery at around $22.35. Meanwhile, the remaining cargoes for Aug 10-11 and Aug 11-12 were unawarded.

--FOB Atlantic, DES Europe and South America

　 On a floating basis, a deal materialized for second-half September delivery. The price was heard at a discount of 25-30cts to the Dutch Title Transfer Facility (TTF) natural gas quotations for September. "The price gap between first-half and second-half September delivery hovers in backwardation albeit marginally," according to a Japanese analyst, so that tradable levels for first-half September delivery were seen at a discount of around 25cts to the quotations. In discussions for first-half October delivery, meanwhile, a bid was posted at a discount of 35cts to the TTF quotations for October, with offers countered at a discount of 27-30cts to the quotations.