LogIn LogOut

Asia LNG Price Jumps by 40% to Record High

October 6, 2021

An LNG tanker in Australia - Credit: 4680.photos/AdobeStock
An LNG tanker in Australia - Credit: 4680.photos/AdobeStock

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


Current News

More Than Two Dozen Missing after Ship Snaps in Two, Sinks Off Hong Kong

More Than Two Dozen Missing after Ship Snaps in Two, Sinks Off Hong Kong

Russia's Control of Sakhalin Project Could Pose Upside Risk to LNG Prices

Russia's Control of Sakhalin Project Could Pose Upside Risk to LNG Prices

Portugal's EDP to Scale Up Offshore Solar Plants in Southeast Asia

Portugal's EDP to Scale Up Offshore Solar Plants in Southeast Asia

India Imposes A Windfall Tax On Oil Producers and Export Duties For Oil Products

India Imposes A Windfall Tax On Oil Producers and Export Duties For Oil Products

Russia to Replace Sakhalin-2 Project Operator with New Firm

Russia to Replace Sakhalin-2 Project Operator with New Firm

State Agency Wants Net-zero Carbon Emissions from Australia's Giant LNG Plant

State Agency Wants Net-zero Carbon Emissions from Australia's Giant LNG Plant

Gazprom Cancels Dividend for First Time Since 1998. Shares Drop

Gazprom Cancels Dividend for First Time Since 1998. Shares Drop
photo

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