RPT-COLUMN-Demand only one side of LNG price surge, supply cut by outages: Russell | Reuters
The spot price of liquefied natural gas (LNG) in Asia is usually at a seasonal low in August in what is historically the shoulder season between summer and winter peak demand.
That the price of spot cargoes LNG-AS is at the highest for this time of year since 2013 has been largely put down to robust demand from top importers such as China, and a determination among buyers to ensure natural gas stocks are adequate for the upcoming northern hemisphere winter.
However, while there is undoubtedly a demand pull factor behind the rising price, it’s also worth noting that supply from major exporters such as Australia, Russia and the United States has been below potential in recent months.
While some top exporters, such as Qatar, have been able to lift production, it certainly hasn’t added sufficient volumes to slake Asia’s robust demand for the super-chilled fuel.
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