--DES Northeast Asia

　 According to one of Japan's major city gas companies, current demand for industrial gases remains in line with average levels. There had been widespread concern about a prolonged supply shortage of naphtha--used as a raw material in petrochemical plants--ever since the situation in the Middle East deteriorated in late February. However, the company stated that it had "not actually heard any reports of a shortage" from its industrial gas customers, and there were no signs that various factories had adjusted production--such as by curbing operating rates--due to a shortage of raw materials. Supplies of heavy oil, used as boiler fuel in factories, have also been sufficient, and it appears the war in Iran had only a limited impact on industrial gas shipments. Meanwhile, the company has shown little interest in spot purchases of LNG, citing a balanced supply-demand situation.

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

　 Bangladesh's state-owned Rupantarita Prakritik Gas (RPGCL) bought all four cargoes in a buy tender closed last Wednesday. The arrival date of Sep 8-9 was changed to Sep 10 and Saudi Arabia's state-owned Saudi Aramco won the cargo at $23.98 and another cargo for Sep 25-26 delivery at $25.70. British BP sold a cargo for Oct 1-2 delivery at $28.03 and European Vitol was awarded a cargo for 5-6 delivery at $26.70.

--FOB Atlantic, DES Europe and South America

　 In the market, Italy's Edison floated a buy tender. Though the tender closing date and delivery schedule remain unclear at this point, the company is seeking a total of four cargoes. state-owned Qatar Energy (QE) decided to extend force majeure for its term supply to Edison until early November, and Edison ended up in losing an additional five cargoes and appears to have initiated this purchase to secure replacement cargoes.