LNG Prices Soar as Europe-Asia Competition Intensifies
The global liquefied natural gas (LNG) market is experiencing a new phase of supply-demand tightness, forcing European and Asian buyers to compete for limited spot cargoes.
Asian buyers are still willing to pay around $25 per million British thermal units (approximately NT$800) for spot purchases, while Europe's gas storage facilities are only about 57% full, significantly below the European average.
The Asian benchmark Platts JKM spot price approached $30 per million British thermal units in mid-September and settled at $25.29 last Friday.
Morgan Stanley analyst Martijn Rats noted that some Asian buyers who would have exited the market at similar price levels during the 2022 energy crisis are continuing to purchase this time around, forcing European buyers to pay a steeper premium for spot cargoes.