SINGAPORE : Energy companies in Asian emerging markets are returning to the market for liquefied natural gas cargoes as prices have fallen to their lowest in more than a year.
Asian spot LNG prices last week were $19.50 per million British thermal units , the first time they have fallen below $20 since September 2021, as inventories remain high with peak winter demand due to end soon. Prices are down over 70 per cent from August's record of $70.50/mmBtu and have dropped by a third so far this year.
Thailand's PTT has also issued tenders seeking a total of 12 LNG cargoes to be delivered between February and April, while India's GAIL Ltd and Petronet respectively sought cargoes for February delivery. Ramesh also noted that spot LNG prices are now competitive with the price of coal for power generation. He sees the recent buying interest, along with cold temperatures from a polar vortex in North Asia, lending near-term support for LNG.