East Asia Sees Slight LNG Price Gain Amid Geopolitical Tensions
The East Asian liquefied natural gas (LNG) price for October delivery has increased by 0.4% to US$20.4 per million British thermal units (MMBtu), driven by geopolitical risk and extreme heat.
Rystad Energy, an independent energy research firm, notes that despite prices remaining close to the US$20 per MMBtu mark, buying interest has expanded in the region.
Bangladesh is seeking three cargoes for August, following the return of the Excellence LNG floating storage and regasification unit (FSRU) after it was shut down due to a fire in mid-July. India, Thailand, and Taiwan are also active in the market.
According to Rystad Energy analyst Antonia Syn, 'gas markets are being pulled in two directions at the moment, balancing weather-driven demand against escalating geopolitical risks.'