Asian LNG prices hit five-month high

Asian LNG prices have risen sharply to a five-month high amid global supply shortages and consumers’ struggle to secure winter supplies. Liquefied natural gas (LNG) prices in Asia have risen sharply as global efforts to secure gas supplies have added to inflation concerns in the region. The spot benchmark LNG price for North Asia rose 10 percent on Monday to $61.025 per million British thermal units. Prices have nearly quadrupled from a year earlier. Gas prices around the world, from Europe to the United States, have been rising as the world’s biggest consumers rush to secure supplies and replenish stocks ahead of winter. Russia announced on Aug. 31 that it would halt the Nord Stream pipeline for three days of repairs, sending shockwaves across the world over concerns that flows may not resume. LNG buyers in Japan, South Korea and Taiwan are stepping up talks with suppliers to secure more shipments by the end of the year, intensifying competition with energy-starved Europe. Importers have had to raise their bids significantly to secure LNG cargoes. Rising fuel costs in Asia, which is struggling with high inflation, are expected to increase electricity costs in the region. Meanwhile, September coal prices for Asia, one of the few alternatives to natural gas for electricity generation for many countries, have more than quadrupled in the past year.