--DES Northeast Asia

　At the Bintulu project in Malaysia, problems occurred at several gas fields supplying feedgas to the 6.80 mil mt/year Tiga project consisting of two liquefaction trains and the 3.60 mil mt/year No.9 train and quality issues also emerged. As a result, supply reduction was expected to be prolonged. A Japanese utility company with a long-term contract for Bintulu cargoes said that about 20 cargoes might be affected from December to March. Supply of most of the affected cargoes would be delayed but some cargoes might be cancelled. In many new long-term contracts or contracts signed after reviewing terms and conditions between Petronas with Northeast Asian end-users from 2016, if supply was delayed or cancelled, Petronas apparently had no need to compensate. Therefore, long-term customers might have to cover their shortfall. Compared to term prices, the spot market was more than $20.00 higher and power and city gas companies were requesting Petronas to supply in accordance with the contracts.

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

　PLL would be closing a buy tender on Friday for two cargoes to be delivered on Nov 19-20 and 26-27. PLL had procured a total of four spot cargoes via tenders conducted until mid-September. Two out of the four cargoes awarded to European Gunvor and ENI could not be supplied and PLL had to move to buy another two cargoes. Gunvor had initially scheduled to supply a cargo from the 3.70 mil mt/year Equatorial Guinea project to PLL but the project declared force majeure and supply to PLL was stopped.　On the other hand, ENI cancelled to supply a cargo to PLL because of commercial reasons. A South Asia end-user said that as current prices were much higher than mid-September when ENI decided to sell, the supplier of ENI refused to supply. However, PLL was also considering to buy fuel oil as alternatives and it was said that PLL was unlikely to buy LNG.

--FOB Atlantic, DES Europe and South America

　Production at the Equatorial Guinea in a Bioko Island in West Africa was halted after end September due to troubles at production facilities. The project had shipped five to six cargoes per month and many of them were supplied to long-term customers in Northeast Asia of Royal Dutch Shell that hold equity. A European trader perceived that troubles at the project were unsurfaced because Royal Dutch Shell sent cargoes from other projects as alternatives for cargoes from the Equatorial Guinea.