LNG Demand is Sky High - Jan 11
Posted: Mon Jan 11, 2021 10:49 am
Cold snap sparks record rise in natural gas prices in Asia . Wall Street Journal .
A blast of cold weather in northeast Asia and a shortage of ships for transporting gas have sparked a scramble for cargoes of liquefied natural gas, igniting a steep rise in prices. Prices for LNG shipped to China, Japan and South Korea, all major importers, have surged from record lows to all-time highs in less than a year.
LNG's unprecedented surge to apply brakes on India's imports, consumption . S&P Global .
The unprecedented surge in spot LNG prices has taken Indian buyers by surprise and forced importers to stay away from spot purchases, which would potentially lead to lower throughput at some terminals, reduce gas-based power generation as well as slow consumption in other industrial sectors. With spot LNG prices hitting record highs, analysts and industry officials said throughput at some terminals could fall by about 10%-12% in the first quarter of 2021 due to a slowdown in spot arrivals, although LNG cargoes based on term contracts were expected to flow in as per schedule.
Column: Buyer's mistakes likely to blame for LNG price surge, not only winter weather . Reuters .
The surge to record highs for the price of spot liquefied natural gas (LNG) is being largely attributed to severe cold weather over much of northern Asia, but miscalculations by buyers of the fuel are probably a larger factor. There are also media reports of at least one transaction in the past week with a price of around $33 to $35 per mmBtu, which shows just how desperate some buyers are to secure supplies of the super-chilled fuel.
A blast of cold weather in northeast Asia and a shortage of ships for transporting gas have sparked a scramble for cargoes of liquefied natural gas, igniting a steep rise in prices. Prices for LNG shipped to China, Japan and South Korea, all major importers, have surged from record lows to all-time highs in less than a year.
LNG's unprecedented surge to apply brakes on India's imports, consumption . S&P Global .
The unprecedented surge in spot LNG prices has taken Indian buyers by surprise and forced importers to stay away from spot purchases, which would potentially lead to lower throughput at some terminals, reduce gas-based power generation as well as slow consumption in other industrial sectors. With spot LNG prices hitting record highs, analysts and industry officials said throughput at some terminals could fall by about 10%-12% in the first quarter of 2021 due to a slowdown in spot arrivals, although LNG cargoes based on term contracts were expected to flow in as per schedule.
Column: Buyer's mistakes likely to blame for LNG price surge, not only winter weather . Reuters .
The surge to record highs for the price of spot liquefied natural gas (LNG) is being largely attributed to severe cold weather over much of northern Asia, but miscalculations by buyers of the fuel are probably a larger factor. There are also media reports of at least one transaction in the past week with a price of around $33 to $35 per mmBtu, which shows just how desperate some buyers are to secure supplies of the super-chilled fuel.