Insight - Surge in spot Asian LNG prices looks good on paper, but deceives

Uptrend: An LNG tanker sits under construction at the Daewoo Shipbuilding Marine Engineering Co shipyard in Geoje, South Korea. The spot price of LNG ended last week at US$4.10 per mmBtu, its highest since mid-January and 122% above the record low of US$1.85 touched in separate weeks at the beginning and end of May. — Bloomberg

The spot price of liquefied natural gas (LNG) for delivery to north Asia has more than doubled since hitting an all-time low earlier this year, but the gain is more impressive on paper than in reality.

The spot price ended last week at US$4.10 per million British thermal units (mmBtu), its highest since mid-January and 122% above the record low of US$1.85 touched in separate weeks at the beginning and end of May.