Asian LNG prices hit $26 as demand poised to drop
LNG (liquefied natural gas) is getting pricey in Asia: costs have jumped to about $26 per MMBtu after supply chain issues and export suspensions, especially from Qatar.
Because of this, Asian demand for LNG is set to drop by up to 10% this year, with Northeast Asia feeling the squeeze the most.
China demand softens, buyers seek cargoes
China's factories are slowing down thanks to high energy costs, while Japan and South Korea are using less gas due to cooler weather.
Still, India and Bangladesh keep buying spot LNG shipments: India's city gas and fertilizer sectors alone make up 70% of its imports, says analyst Shruti Shah.
GAIL and PetroChina have also deployed trading teams to source alternative cargoes to replace Qatari and Emirati supplies as everyone waits to see if Gulf exports will bounce back or if new sources will step in.