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LNG prices pose long-term problem for Asian buyers

LNG in Asia needs to be priced considerably cheaper than it is now for the fuel to stand a chance of making in-roads into the region’s energy mix in the long term LNG in Asia needs to be priced considerably cheaper than it is now for the fuel to stand a chance of making in-roads into the region’s energy mix in the long term.
By Colin Shek 5 December 2018 0 33560
The Incheon LNG terminal in South Korea. (Kogas)

Asian spot LNG prices have trended down in recent weeks despite the onset of winter, which is traditionally the northern hemisphere’s peak demand season for gas. Lower prices could support demand in coming months, but they remain far above levels needed for gas to remain competitive in the long term.

Spot prices for the four biggest LNG importers in Northeast Asia – Japan, South Korea, China and Taiwan – dropped to an average of $9.82/MMBtu in the week up to 30 November, according to SCI International....