* December spot price lowest since August
* Supply from Australian Ichthys project enters spot market
* Angola, Sakhalin offer cargoes for November
* ENN starts operations at China's first major privateterminal
By Jessica Jaganathan
SINGAPORE, Oct 19 (Reuters) - Asian spot prices forliquefied natural gas dropped for a fourth week in a row,trading at their lowest in two months, amid increased supplycourtesy of a new project in Australia and expectations of morefrom the United States.
December spot LNG <LNG-AS> fell to $10.40 per millionBritish thermal units (mmBtu), the lowest since mid-August.November cargoes were valued at below $10 per mmBtu, tradesources said.
Oil prices are set for a second weekly drop amidhigh inventory, weighing on LNG prices as many contracts areoil-linked.
Japan's Inpex offered four spot cargoes over the second halfof October through November from its giant Ichthys project innorthwestern Australia, in a sign that it may be ramping upproduction, two industry sources said.
It was not immediately clear if the cargoes were sold byFriday, but Inpex was due to load its first LNG cargo from thelong-delayed project this week after earlier selling its firstcondensate cargoes, sources have said.
Angola LNG and Sakhalin LNG each offered a cargo forNovember though details of the buyers were not immediatelyknown.
Australia's Woodside Petroleum has also resold some of itsU.S. term cargoes, an industry source said. Woodside has anagreement to buy LNG from Cheniere's planned Corpus Christiexport plant on the U.S. Gulf Coast.
CHINA EYES LONGER DEALS
Chinese buyers were still largely absent from the spotmarket, traders said, as they look towards longer term suppliesahead of winter.
Unipec Asia, the trading arm of Chinese oil major Sinopec,is in talks to buy more LNG from the Exxon Mobil Corp-operatedPapua New Guinea project, possibly for a period of three years,sources said.
"Everyone is worried about a winter shortage," said onemajor LNG buyer in China, adding this is driving Chinesecompanies to lock in term supply ahead of winter when demandtypically surges.
Chinese gas distributor ENN Energy Holdings hasbegun operations on the first phase of its Zhoushan liquefiednatural gas import terminal, aiming to ramp up winter suppliesin eastern China.
Meanwhile, commodities trader Trafigura sold a cargo forlate December delivery into Japan to trading house Vitol Asiaduring price agency Platts' trading process on Friday, sourcessaid.
The cargo was sold on a price linked to Britain's NationalBalancing Point (NBP).
Oil major BP also sold a cargo for delivery into South Koreafor mid-December to Vitol Asia.(Reporting by Jessica JaganathanEditing by Manolo Serapio Jr.)
BP (BP.)