Asian LNG prices fall to near three-year low as buyers shun spot cargoes
The Asian sucking sound has become an Asian hissing sound. No more cargoes. Now we need a safety valve. And the only place to make that a possibility is Europe. Indeed, GAIL has already sent a cargo it does not need anymore to Europe. Europe is the safety option now. But wait, one needs terminal access in Europe in order to make that happen. This means that only those prepared or those prepared to pay for being unprepared can do this. There is money in this though. Imagine a terminal in North Western Europe that gets built and financed entirely on the commitment of Asian buyers to pay for the capacity in case they need it. Would make a lot of sense to them when one looks at what’s at stake now. There is money to be made by smart Europeans. The question is – will Europeans be smart? If history is any guide, I am worried.
Asian liquefied natural gas (LNG) prices this week have dropped to their lowest in nearly three years as record supply lands on global shores and high inventory levels in North Asia are curbing import demand.
