Low prices not luring Asian buyers back to LNG
Preferable nuclear and coal options suggest balanced Asian LNG market, at least over the summer
A sharp fall in Asia-Pacific LNG prices over the first quarter of 2023, to their lowest in nearly two years amid muted demand, has tempted some marginal buyers off the sidelines—but the lower prices will not be enough to spur major coal-to-gas switching in the region’s top purchasers of the fuel. The reversal in Asian spot LNG prices since the start of this year has been dramatic following last year’s record highs, when they traded at unprecedented premiums to oil-linked pricing and prompted China, Japan and South Korea to burn more coal for power generation to fill in electricity demand as gas imports decreased. Fast forward to this spring, and Asian inventories are now tracking levels that
![](/images/white-fade.png)
Also in this section
26 July 2024
Oil majors play it safe amid unfavourable terms in latest oil and gas licensing bid rounds allowing Chinese low-ball moves
25 July 2024
Despite huge efforts by India’s government to accelerate crude production, India’s dependency shows no sign of easing
24 July 2024
Diesel and jet fuel supplies face a timebomb in just four years, and even gasoline may not be immune
23 July 2024
Rosneft’s Arctic megaproject is happening despite sanctions, a lack of foreign investment and OPEC+ restrictions. But it will take a long time for its colossal potential to be realised