LNG prices surge sharply, Asian buyers hesitate and wait-and-see

Golden Ten Data reported on March 20 that after Qatar announced that two vessels from its world’s largest liquefied natural gas export hub may be out of operation for up to five years, global supply has tightened further, and Asian buyers are closely monitoring this volatile liquefied natural gas market. The region’s benchmark spot price for natural gas was around $25 per million British thermal units on Friday. The sharp price increase has made buyers somewhat hesitant. Indian Oil Corporation concluded its tender process on Thursday but did not make a final decision for April deliveries, as the lowest bid was $28 per million British thermal units. A Chinese buyer stated that they are currently observing the situation, as the country still has ample inventory. A spokesperson from South Korea’s Ministry of Industry said that there are other alternative energy sources to compensate for the loss of Qatari cargoes due to the vessel shutdown, and there are currently no supply issues. However, the spokesperson added: “Given the increased uncertainty, we plan to respond by closely monitoring supply, demand, and prices.”