--DES Northeast Asia

In the DES Northeast Asia market last week, front month delivery hovered around $ $9.85-10.15 once. An increase in the Netherland's TTF natural gas market and the supply concerns from Australia, where tropical storms hit, surged prices. However, a rapid rise in the market has reduced buying interests among end-users.

For delivery to Southeast Asia, the Electricity Generating Authority of Thailand (EGAT) cancelled to buy either one of the cargoes from Apr 13-15, Apr 16-18, and Apr 19-21 delivery via a tender closed on Mar 18. EGAT failed to buy a cargo through a tender that closed on Mar 20, as well. Before the move, EGAT had already canceled a tender closed on Mar 15, citing the reason for the expensive prices. As a result, some market players guessed that EGAT might have switched to buying cargo from PTT Public Co, not from the tender, considering the market condition at this moment.

In China, some players appeared to show interest in summer delivery, but "The rise in the DES Northeast market will put them on hold for a while" (a Chinese end-user). Moreover, a Chinese state company is scheduled to revise pipeline gas price in late March; when the price is revised downward, it is expected for end-users to buy pipeline gas first. "When pipeline gas is cheap, we don't dare to buy cargo on the international market" (the same source).

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

A tender, which was closed by Indian state-run Gujarat State Petroleum Corp (GSPC) on Mar 19 to buy a cargo delivered to the 17.50 mil mt/year Dahej terminal on May 24-28, was not awarded. This was the second time in a row for GSPC to cancel buying in tender. The best offer price in the tender appeared to be $9.50, which GSPC found too expensive. In the Middle East, Kuwait Petroleum Corp (KPC) was said to contemplate increase exports for fuel oil. Under this situation, a Japanese company said, "LNG demand for power generation from Kuwait will be limited for the time being."

--FOB Atlantic, DES Europe and South America

More sources were concerned about supply in Europe. At the Aasta a Hansteen gas field in Norway, a glitch occurred at a compressor. Repair works were scheduled to take place until Mar 25 and production rates would move down during the period.