Extreme heat this summer has led to a significant increase in liquefied natural gas (LNG) prices in Asian countries, according to Japan’s Nikkei newspaper.
In mid-June, LNG prices in the spot market climbed to $12.6 per million British Thermal Units (BTU), approximately 1.5 times higher than in early March and the highest since December 2023.
The price in Asian markets remained around this level in early July, slightly below $12.5 per million BTU. European LNG prices also reached their highest levels since last December, Nikkei noted.
“Strong heat is the key factor for their growth,” the newspaper wrote. “This spring, temperatures in China, the world’s largest LNG buyer, reached their highest levels since 1961. Japan, the second-largest LNG procurer, is also experiencing temperatures significantly above average.”
The surging demand for LNG is driven by the need for large volumes of electricity for air conditioning and cooling units due to the extreme heat.
