Commodity Market Report
LNG Short-Term Analytics: Demand Tracker
Report summary
Asian winter price spike: Very few commodities experience a rapid 2000% price rally, but that’s what took place in Asia as the cost of LNG cargoes increased from $2/MMBtu cargoes during summer 2020, to almost $40/MMBtu only six months later. So acute was the LNG shortage and lack of inventory that one Japanese gas utility was seeking to buy any available heel volume from cargoes that had already discharged. ‘Heel’ volume would normally be used to fuel their return journey. Whilst this grossly inflated price was largely due to lack of liquidity, only a single cargo was traded at these extraordinary levels, however there are strong fundamental reasons to believe that increased seasonal price volatility will become a more regular occurrence going forward.
Table of contents
- India: Lockdown reduce to CGD (Citygas demand) and RLNG demand reduced in Fertiliser sector
- India: Falling fertilizer demand, and expected lockdown impact to CGD (Citygas demand).
- South Korea: High LNG generation, high LNG imports, and strong inventory rebuild
- South Korea: Nuclear disruption
- India: BP and Reliance Industries (RIL) offering sales of KG basin gas
- Turkey: Increased Russian pipeline flow in 2022 - 26 February 2021
- India: Poor domestic gas production - 19 February 2021
- Northwest Europe: Increase global uncommitted LNG - 12 February 2021
- Japan: Seasonality Change - 29 January 2021
- S.Korea: Lower inventory and increased LNG to power - 22 January 2021
- China: Stronger economic data and gas demand growth - 15 January 2021
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