--DES Northeast Asia

　 It is believed that several cargoes have recently changed hands for delivery to China and South Korea. But Japanese public utility energy companies still appear to be refraining from spot purchases. One major Japanese city gas company emphasized, "With high inventory levels and high market prices, there is no reason to buy." Against this backdrop, power companies such as JERA and Kyushu EPC, which hold long positions, are expected to have room to resell on the spot market. In addition, power prices on the Japan Electric Power Exchange (JEPX) have been driven up by the surge in spot LNG prices, with the October average system price (national price) hovering at 19.18 yen per kilowatt-hour. As a result, market observers note that power companies--such as Chugoku EPC--which have relatively small term LNG purchase volumes but are running a surplus of inventory, are actively selling electricity on the wholesale market. Chugoku EPC resumed operations at the 820MW No2 reactor at its Shimane nuclear power station on Sep 16 after completing a scheduled inspection. Furthermore, it is reported that temperatures in the Chugoku region in September did not rise as much as initially forecast, causing gas demand used for air conditioning to remain sluggish. According to the Japan Meteorological Agency, the average temperature in Hiroshima City, Hiroshima Prefecture, in September was 29.3 degrees, 1.4 degrees lower than the same month last year.

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

　 India's state-owned Indian Oil Corp (IOC) purchased one cargo from a trader for October to November delivery to the 22.50 mil mt/year Dahej terminal at $28.70-28.80 in a tender closed on Wednesday. The detailed arrival dates were reported to be Oct 29, 30, Nov 23, 26, 29 or 30.

--FOB Atlantic, DES Europe and South America

　 The Tanzanian government is expected to make a final decision within the next few months on major investment projects, including a $42 billion LNG development project. This LNG project is led by Norway's state-owned Equinor and British Shell, and is seen as part of an effort to establish East Africa as a major energy hub. The project paves the way for the development of natural gas reserves totaling 47 trillion cubic feet, with US-based ExxonMobil, Pavilion Energy, Medco Energy, and state-run Tanzania Petroleum Development Corp (TPDC) also participating as project partners.