East Asian LNG Prices Surge on Geopolitical Risk and Heat
The East Asian liquefied natural gas (LNG) price for October delivery edged up by 0.4% to US$20.4 per million British thermal units (MMBtu) last week, according to Rystad Energy's Gas and LNG Market Update report.
This increase was driven by geopolitical risk and extreme heat, which supported spot demand despite prices remaining close to the US$20 per MMBtu mark.
Rystad Energy noted that buying interest has expanded in the region, with Bangladesh acquiring three cargoes for August after the Excellence LNG floating storage and regasification unit (FSRU) returned online following a fire in mid-July.
India, Thailand, and Taiwan (China) are also actively participating in the market, while Japan and South Korea face a 60 to 70% probability of above-average temperatures in August, which could lead to faster inventory drawdowns and additional near-term procurement.