Spot LNG prices in Asia have gained 10% in the last one week and traded at a 5-month high.
Spot LNG prices in Asia rose to the highest since late December as importers in the region continued to gather shipments for delivery in the summer.
The North Asian benchmark was trading at about $11.5 per million British thermal units, Bloomberg News reported, citing traders with knowledge of the matter. Spot LNG prices have surged more than 10% in the past week.
Moves by Asian importers such as Japan and South Korea to replenish gas stocks ahead of the Northern Hemisphere summer are exacerbating supply tightness caused by outages at plants in Malaysia and Australia. A heatwave in Southeast Asia has boosted demand for LNG and even importers in India, where gas plays only a small role in the energy mix, have bought cargoes.
It is unclear how long the purchases will last, as the rise in prices means alternatives are now more cost-effective in emerging markets. Chinese firms may opt for cheaper domestic gas, while Indian industries may choose petroleum products over LNG.
