Platts JKM for January gained 22.5 cents/MMBtu over the course of the week to settle at $7.40/MMBtu Friday, as additional demand to support prices emerged from buyers in South Asia and the Middle East.
There were some expectations that Japanese utilities might buy more January or February cargoes, after they showed strong interest for Bontang volumes. However, it remained unclear how much outstanding January demand from North Asian buyers there was, and whether that demand would be price sensitive.
Sources said the majority of the interest in cargoes for January deliveries remained focused on South Asia and the Middle East, as well as traders and portfolio sellers looking to optimize positions.
Pakistan's PSO issued a tender seeking seven cargoes for January and February delivered cargoes, which were expected to provide support to South Asian prices.
In the Middle East, Jordan's Nepco is expected to issue a buy tender for up to two cargoes for delivery in the first quarter of 2016, according to a company source. No tender document has been released for the requirement, though one is expected to be issued within the month.
The additional demand from Pakistan and Jordan would add onto existing requirements for December-March cargoes from Indian buyers GSPC, IOC and Gail.
India's GSPC closed tender December 4 seeking a single cargo for delivery in January. The tender was issued November 30. The buyer failed to award a previous tender that closed November 17 and was seeking six cargoes for delivery over 2016 because offers did not meet expectations, sources said.
India's IOC was also seeking three Q1 cargoes through a buy tender valid until December 15. The tender closed December 2, and was issued after the buyer failed to award a similar tender closing November 18 and seeking the same number of cargoes for the same delivery period.
The DES West India assessment was up 25 cents week on week to settle at $7.40/MMBtu on Friday, resulting in the 2.5 cent premium commanded by the JKM to the DES West India disappearing.
In the Atlantic, a buy tender from Argentina for 2016 requirements was also expected to tighten available volumes for prompt cargoes.
On the supply side, new supply was also emerging, with up to two excess cargoes offered by the Indonesian Donggi Senoro export facility. The cargoes are for delivery in the period January 10-February 20. The tender was issued December 4 and is closing December 8.
Also on the supply side, some of Q1 2016 volumes offered by Indonesia's Pertamina from the Bontang export plant were heard awarded at the DES equivalent of the low $7s/MMBtu, although there was not sufficient confirmation to substantiate this. The tender closed November 24, with validity till December 16.
In a potential setback to Asia Pacific production, sources said the second train from the BG-operated Queensland Curtis LNG export plant was due for scheduled maintenance, but the timeline remained unclear. BG declined to comment on the matter.
In shipping, France's Engie reloaded a cargo from the South Korean Gwangyang terminal aboard LNG carrier GDF Suez Point Fortin on November 30, data from Platts trade flow software cFlow showed, and was scheduled to deliver the cargo to Japan's Niigata Prefecture.
The reload follows delivery of an Algerian LNG cargo to Beijing Gas Group by Engie on the same vessel via third-party access to PetroChina's Tangshan LNG terminal November 26, as part of a two-cargo supply contract signed by both parties in June.
