Asian gas prices reached their highest level in five months as a result of a worldwide rush to secure liquefied natural gas cargoes for the upcoming winter.
Tuesday saw a surge in the benchmark spot LNG price for Asia, approaching $60 per million BTUs, the highest level since early March, when Russia’s invasion of Ukraine upended the energy markets.
The decision by Russia to reduce gas imports to Europe is driving up the cost of heating fuel and electricity globally. In order to acquire LNG spot cargoes for delivery during the peak winter consumption season, utilities in Asia and Europe are stepping up their efforts, which is causing a shortage and driving up costs.
According to merchants with knowledge of the situation, some Japanese utilities are presently looking to purchase additional LNG shipments for delivery beginning in December. According to dealers, Korea Gas Corp., one of the biggest consumers of the fuel worldwide, is also looking to buy more winter supply.
Disruptions in the supply from Australia to the US are also limiting the amount of LNG that is accessible. Several businesses, including Uniper SE and Marubeni Corp., participated in S&P Global’s market on closure process on Tuesday and submitted bids for LNG supplies to Asia.
According to S&P Global, the Japan-Korea Marker increased to $57.728 per million British thermal units, more than tripling its previous high. In the sweltering summer heat on Tuesday, European gas prices just avoided reaching a record high.
Image Source: Wikimedia Commons
News Source: CRUCIAL NEWS GLOBAL
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