Asia LNG Price Jumps by 40% to Record High

Wednesday, October 6, 2021

Asia liquefied natural gas (LNG) spot prices surged by 40% to a record high of over $56 per million British thermal units (mmBtu) on Wednesday, amid a global energy crunch and low gas inventories.

Price agency S&P Global Platts' Japan-Korea-Marker (JKM), which is widely used as a spot benchmark in the region, climbed to $56.326 per mmBtu on Wednesday for a cargo delivered into North Asia in November, up $16.65 from Tuesday, its data showed.

This works out to roughly over $320 per barrel of oil equivalent. Brent crude oil futures is currently trading at about $81 per barrel.

Prices for spot LNG cargoes delivered in December rose to above $57 per mmbtu, according to the data.

Asian LNG prices followed an earlier rally by Dutch and British wholesale gas prices amid forecasts of lower wind and cooler weather.

The price rally comes at a time when the winter season is just starting in the northern hemisphere and as gas demand for heating is expected to go up, especially from top LNG buyers, China and Japan.

Temperatures in Seoul, Beijing and Shanghai are expected to dip below average over the next 45 days, weather data from Refinitiv Eikon showed. 

(Reporting by Jessica Jaganathan; Editing by Andrew Heavens and Louise Heavens)

Categories: Energy LNG Activity Asia

Related Stories

MODEC, Carbon Clean to Advance FPSO-Mounted Carbon Capture Tech

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

Fire Contained at Vietnamese Oil Platform Undergoing Decommissioning (Video)

Mubadala Energy Open to Sell Andaman Gas for Domestic Use

ABS Greenlights SHI’s Multi-Purpose Deepwater LNG Floating Unit

Turkey Discovers New Black Sea Gas Reserve

Indonesia Grants Approval to Kuwaiti Firm for Anambas Block in Natuna Sea

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

ADNOC Signs 15-Year LNG Supply Deal with Osaka Gas for Ruwais Project

Current News

MODEC, Carbon Clean to Advance FPSO-Mounted Carbon Capture Tech

Aker Solutions, PTAS JV Hooks Brownfield Services Extension off Brunei

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com