SINGAPORE March 21. 2024 (Saba) - Purchases of liquefied natural gas from China, India and regions in Southeast Asia has risen in the spot market after prices fell to the lowest level in nearly three years.
Media reports, citing analysts, said on Thursday that the recovery in demand supported by favorable prices may push China’s imports (the world’s largest buyer of liquefied natural gas) beyond the record level of 78.8 million tons recorded in 2021, and will also increase India’s imports by about ten percent this year, which will lead to a shortage in global supplies and ultimately raise prices.
According to S&P Global Commodity data, spot imports of liquefied natural gas by Asian buyers rose by about a third in the first quarter of the year to 161 shipments.
Spot prices for Asia are estimated to average $9.82 per million British thermal units for this period, compared to 125 cargoes in the same period in 2023 when prices averaged $18.75 per million British thermal units.
Global gas markets are witnessing greater supplies after weaker than expected demand due to milder winter weather and rising inventories in the United States, Europe and Japan.
Asian LNG prices reached $8.30 per million British thermal units earlier this month, their lowest levels since April 2021, before recording a slight rise to $8.60 per million British thermal units due to buying from the spot market.
Increased LNG imports in China and India are not expected to lead to a significant decline in coal demand, as overall energy demand continues to grow and both countries continue to prioritize domestically produced fuels including coal.
H.H
resource : Saba
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