Asia LNG trades at $8.75/MMBtu, highest price since January

London (Quantum Commodity Intelligence) – LNG traded in Asia at the highest level since January Thursday, with a cargo deal reported at $8.75 per million British thermal units (MMBtu), according to reports referencing trade data from S&P Global Platts.

The Asian benchmark Japan-Korea Marker (JKM) last traded this above this level in the second half of January, having traded at record highs early in 2021.

The transaction today was reported as PetroChina selling to BP.

Securing LNG supplies ahead of peak demand periods of the year has become a major consideration for buyers, after last winter's record volatility and spot prices which followed the sustained cold snap across North Asia in January.

JKM had been trading at below $5/MMbtu in Q4 2020, but the demand surge saw prices rally to record levels, including a cargo trading at an all-time high of around $39/MMBtu in mid-January.

North Asia typically has a second peak demand period during the summer as demand for air conditioning ramps up.

South Korea, China and Japan all start spot buying programs in the second quarter to bolster inventories.