Global LNG demand will be driven by Asia-Pacific: ICRA

New Delhi, Jan 26 : The global demand for LNG will be driven by the Asia-Pacific and particularly China, ratings agency ICRA said in a report.
The assessment comes after the spot price for natural gas (spot LNG prices) rose to an all-time high level in January 2021.
The Japan Korea Marker (JKM), which is a representative of the spot gas prices for Asia, rose sharply to $32.94 per mmbtu for February delivery on January 12.
The prices, which were under pressure for most part of CY2020, witnessed a sudden surge from December 2020 onwards.
At such elevated price levels, ICRA expects a drop in the domestic LNG consumption on a YoY and QoQ basis in the current quarter.
“The steep rise in the price can be attributed to the extreme winters being witnessed in China, Japan, and Korea pushing up demand and supply disruptions in Australia, Qatar, Malaysia, Egypt, Norway, Trinidad and Tobago and Nigeria,” said Prashant Vasisht, Co-Head-Corporate Ratings & Vice President, ICRA.