Thursday 17 December 2020

'There is hardly any gas': LNG price rally exacerbates gas crunch in Asia | Reuters

'There is hardly any gas': LNG price rally exacerbates gas crunch in Asia | Reuters

Surging spot prices for liquefied natural gas (LNG) are exacerbating a gas supply crunch in key fast-growing emerging markets in Asia just as a cold spell in other parts of the region boosts demand for the fuel.

Companies from Pakistan to China have cancelled a flurry of LNG tenders this week, several trade sources said, as lofty prices risk pushing up the input costs of industries, which could make energy more expensive for consumers.

Benchmark Asia spot LNG prices LNG-AS have soared sevenfold since May to six-year highs, driven by production losses in Australia, Malaysia, Norway and Qatar combined with accelerating use in China, India and elsewhere.

“Buyers with no alternatives are now paying top-dollar for prompt cargoes in January,” said Chong Zhi Xin, a director at consultancy IHS Markit.

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