--DES Northeast Asia

　 As of Aug 16, Japan's LNG inventory for power generation stood at 2.26 million metric tons, significantly exceeding the target of 2 million metric tons. While electricity demand in eastern Japan is being curbed by low temperatures, the power supply and demand situation in western Japan--where high temperatures persist--is somewhat strained, with Chugoku EPC's Misumi coal-fired power plant Units No.1 and No.2 with a respective capacity of 1,000MW reducing output due to equipment malfunctions. Kansai Electric Power Co's nuclear power plants are also offline, so demand for LNG as a power generation fuel is likely to increase in western Japan. Under these circumstances, market observers believe that JERA, which has ample inventory flexibility, may supply LNG cargoes to Kansai EPC and Chugoku EPC.

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

　 A buy tender issued by India's state-run GAIL that was closed on Aug 18 for one cargo scheduled to arrive at the Dahej terminal (annual receiving capacity of 11.4 million metric tons) on Sep 1-10 appears to have been awarded in the mid-$20s. It was also reported that a purchase tender issued by state-owned Indian Oil Corp (IOC), which closed on Aug 14 for one cargo scheduled to arrive at the Dhamra terminal (annual receiving capacity: 5 million metric tons) on Sep 7-9, was successfully awarded. Although detailed results of the winning bid are unknown, a South Asian buyer stated, "The price was in line with market levels."

--FOB Atlantic, DES Europe and South America

　Colombia's state-run Calamari LNG closed a DES-based buy tender for a total of five cargoes on Aug 18. All five cargoes appear to have been awarded to British BP. In Colombia, hydropower generation capacity has declined due to a decrease in reservoir levels at dams, potentially leading to an increase in demand for gas-fired power generation. According to the country's power company XM, as of Aug 17, water inflows into dams used for hydropower generation remained at approximately 66% of normal levels.