January 10, 2024 (MLN): North Asian liquefied natural gas prices fell to the lowest in nearly seven months as an outlook for milder weather and high inventories reduced the need to buy more fuel for winter, as Bloomberg reported.
Spot rates dropped to about $9.80 per million British thermal units on Tuesday, the lowest since mid-June, according to traders.
The decline in price makes it affordable and beneficial for cash-strapped countries like Pakistan.
Pakistan LNG plans to immediately float tenders to address the gas crisis.
Supply is ample, with exporters from Angola to Papua New Guinea offering to sell shipments this week, they said.
Prices of the heating and power plant fuel have almost halved since mid-October, providing relief for households and businesses that were hit by higher bills after Russia’s invasion of Ukraine in early 2022 sparked a global energy crisis.
European gas futures have also dropped as a spell of frigid weather is expected to be over by next week.
High gas inventories across North Asia, home to the biggest LNG buyers, also means there’s no immediate pressure to procure additional fuel.
Temperatures are forecast to be above seasonal norms in China and the Korean peninsula from January 09-17, data compiled by Bloomberg show.
Still, the drop is prompting some interest from more price sensitive customers in emerging markets.
Buyers in India and Thailand are looking for cargoes for February, according to traders, which may help to establish a floor for prices.
