January 25, 2021 Read More →

Spot LNG prices rising in Asia due to cold snap

Camrose Voice:

Extreme cold weather and mismatched supply and demand have pushed spot prices for liquefied natural gas (LNG) in Asia through the roof.

Bloomberg reports that LNG spot prices went from “almost to zero” in April 2020 to above US$30 per one million British thermal unit (MMBtu), rising “18-fold in less than nine months.”

Prices in Asia reached almost $30 versus just $2.60 per MMBtu in the United States. This resulted in traders diverting supplies to the hot Asian markets. Data intelligence firm Kpler’s ship tracking showed both Shell and Total diverting cargoes of Nigerian and U.S. LNG to Asia. 

“The ongoing volatility in gas prices could now jeopardize as much as US$50 billion of gas-fired power projects in major South Asian LNG markets of Pakistan, Vietnam and Bangladesh,” Bruce Robertson, of the Institute for Energy Economics and Financial Analysis, was quoted as saying. 

[Rashid Husain Syed]

More: Below-normal temperatures lead to soaring spot LNG prices

Posted in: IEEFA In the News

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