Qatar LNG Disruption Drives Global Prices to Near Four-Year High
The global liquefied natural gas (LNG) market is experiencing a near four-year high in prices, fueled by damage to Qatar's main production facility. The November futures contract for Japan Korea Marker (JKM), a key benchmark for LNG delivered to Northeast Asia, closed at $27.765 per million British thermal units, up 30.85 percent from a month earlier and 71.55 percent from six months earlier.
The disruption in Qatar's LNG exports is causing supply shortages, which are driving up prices. To make up for the shortfall, QatarEnergy is reportedly negotiating long-term supply contracts with U.S. companies through 2031.
Experts warn that the higher prices could have a significant impact on households and businesses in Korea this winter. 'Some level of electricity rate increase is something the public will have to accept,' said Yoo Seung-hoon, a professor at Seoul National University of Science and Technology.