Insight - Demand is only one side of LNG price surge, supply cut by outages

Main user: A LNG tanker leaving PetroChina’s receiving terminal in Dalian. China is poised to overtake Japan this year as the world’s biggest LNG buyer. — Reuters

THE spot price of liquefied natural gas (LNG) in Asia is usually at a seasonal low in August in what is historically the shoulder season between summer and winter peak demand.

That the price of spot cargoes is at the highest for this time of year since 2013 has been largely put down to robust demand from top importers such as China, and a determination among buyers to ensure natural gas stocks are adequate for the upcoming northern hemisphere winter.