Nikkei: Liquefied natural gas prices rise by nearly 10 times in Asia

Summer prices for liquefied natural gas (LNG) in Asian countries have risen by almost 10 times in recent years due to concerns about competition in the oil and gas market in the coming years.

The average summer prices on the spot market in Asia were about $5 per 1 million BTU (British Thermal Unit) until 2019, according to Nikkei newspaper.

According to the Japan Oil, Gas and Metals National Corporation (JOGMEC), the Japan Korea Marker (JKM) index rose to $52 per 1 million BTU on July 27, 2022. JKM reflects the price at which gas is supplied to Japan, South Korea, China and the island of Taiwan.

Asian LNG importers who buy gas from the US have to raise purchase prices to remain competitive. This occurs amid rising gas prices in Europe. The prices are rising due to the reduction in supplies from Russia.

Pakistan, Bangladesh, and India are forced to reduce the procurement volume because these developing countries do not have big foreign exchange reserves.