In Asia, liquefied natural gas (LNG) prices in the spot market rose 20% between 16-23 November, reaching their highest level since the beginning of October. informs Bloomberg with reference to traders.
The Japan-Korea LNG index, the LNG benchmark for North Asia, rose 20 percent week on week to $34.24 per million Btu.
The rise in fuel prices in Asia came as traders feared a possible supply disruption due to production cuts at a key US plant and cooling temperatures in Europe at the start of the winter heating season. In this case, it is stated that the fuel supply to Asian countries may also be at risk.
“Although North Asian LNG importers such as Japan and China are optimistic that they have enough fuel for the winter, stocks are limited and cold weather stocks in these countries can quickly deplete,” the note said.
November 21 Bloomberg cites Japan’s Ministry of Commerce forecast reportedMany companies around the world will have trouble purchasing liquefied natural gas (LNG) due to long-term contracts that run out by 2026. At the same time, failure to invest in LNG export capacities will only exacerbate the global fuel shortage problem.