LNG: Intercontinental to inter-regional?
Price differentials are threatening the economics underlying global LNG arbitrage. But the lower prices may unlock competition within regions
It was all going rather well for efficient global LNG trade. The associated gas boom that accompanied the US shale oil revolution drove Henry Hub prices to bargain-basement levels just at a time when the country was developing its first wave of liquefaction and export capacity, most of it linked to those Louisiana prices. An Asian market with an increasing thirst for gas, particularly in China, provided an obvious outlet for these volumes, particularly because the economics worked. As soon as the Opec+ deal in the second half of 2016 pushed oil prices upwards from their sub-$30/bl lows, Asian gas prices—linked largely to oil—decoupled on the upside from global gas supply-demand fundamentals.
Also in this section
13 March 2026
Brussels is again weighing a cap on gas prices amid the Hormuz crisis, but the measure could backfire by deterring the LNG cargoes Europe urgently needs
12 March 2026
Emergency oil stocks provide a last line of defence to oil market shocks, so the IEA’s unprecedented 400m bl release represents something of a double-edged sword
12 March 2026
LPG could rapidly expand access to clean cooking across Africa and prevent hundreds of thousands of deaths from indoor air pollution each year, but infrastructure shortages and regulatory barriers are slowing investment and market growth
11 March 2026
Missiles over Dubai and disruption in Hormuz are testing the emirate’s reputation—and shaking the energy hub at the centre of the Gulf economy
