Lower LNG prices trigger surge in Asian spot market purchases

Spot LNG imports by Asian buyers increased by nearly a third in the first quarter of the year to 161 cargoes. — Reuters

SINGAPORE: Price-sensitive liquefied natural gas (LNG) buyers from China, India and parts of South-East Asia are snapping up more spot shipments of the fuel to power industries and generate electricity after prices have fallen to the lowest level in nearly three years.

The price-led demand revival could push LNG imports by the world’s top buyer China beyond its record volume of 78.8 million tonnes in 2021 and also raise India’s imports by about 10% this year, analysts said, tightening global supplies and ultimately lifting prices.