So far this year, Asian spot LNG prices have slid by around 40% and are more than 70% lower from the record $70 per MMBtu in August 2022. The markedly lower spot LNG prices have prompted India, Bangladesh, and Thailand to seek to buy LNG cargoes by the middle of this year. Bangladesh is returning to the spot market after halting tenders to buy the fuel in July 2022 as prices soared amid Europe’s rush to procure LNG for this winter without much of the previous supply of Russian pipeline gas.
“We are also trying to secure LNG from long-term partners, but it looks like they are unable to provide this year,” the official said. , a survey of Japanese companies conducted by the local trade ministry showed at the end of last year. its LNG imports this year as prices have eased, the biggest gas importer in the country, Petronet, said last month.
“Similar to Bangladesh, Pakistan’s foreign currency reserves are depleting rapidly due to the country’s high dependence on imported fossil fuels and skyrocketing commodity prices,” IEEFA noted. Going forward, rising concerns over fuel supply security and affordability of LNG have downgraded the prospects for LNG demand growth in the region, according to the institute.
LNG demand in Asia this year is set to increase, thanks to the Chinese reopening and the return of South Asia to the spot market.