LNG: Asian LNG spot price hits record high of $ 34.47 / mmbtu
A combination of low inventories and strong demand for gas has pushed up prices in Europe, while a colder than expected winter in North Asia is fueling the price spike.
Pricing agency S&P Global Platts said on Thursday that its Japan-Korea-Marker (JKM), which is widely used as a benchmark for spot LNG contracts, was $ 34.47 per million thermal units. British (mmBtu).
It broke the previous record of $ 32.50 per mmBtu reached in mid-January during the height of winter, according to data from Platts.
“The global rise in LNG prices is largely due to the gas situation in Europe,” said Ciaran Roe, global LNG director at Platts.
In Europe, gas storage levels remain low compared to historical averages, limited LNG imports and strong demand for gas due to the economic recovery after the lockdown, Roe said.
Fuel shortages in China, which are creating higher demand from utilities, below-average temperatures expected in China and South Korea, and lower capacity utilization at liquefaction plants around the world due to fuel issues. ongoing supply are also factors, he added.
Gas prices at Dutch hub TTF, a European benchmark, hit new highs on Thursday due to supply issues, cold weather forecasts and short coverage ahead of the official start of the winter gas season.