Asian liquefied natural gas (LNG) prices have risen to their highest since 2014 for this time of the year as demand from China, India and South Korea has surged at the same time several production issues are curbing spot supply.
LNG prices typically peak during the Northern Hemisphere winter amid heating demand and during the summer to fuel power generation, but this year prices have climbed 32 percent since mid-April to $9.60 per million British thermal units (Btu) last week and are trading near $10 per million Btu this week.
Asian demand has strengthened this year led by stricter environmental standards, rising economic growth and a colder-than-usual winter. The higher prices could reduce LNG demand as industrial customers may consider alternative fuel sources. Read More