Dubai-based H-Energy's LNG trading arm being liquidated – Bloomberg

London (Quantum Commodity Intelligence) - The Dubai-based LNG trading firm, H-Energy, has been liquidated after defaulting on trading losses, according to a letter to creditors seen by Bloomberg News.

HE Mideast Ltd, part of India's Hiranandani Group, had insufficient funds to meet its debts, according to the letter, dated April 1.

The report said that the firm defaulted on at least $50 million worth of debt to LNG suppliers including Malaysia's Petroliam Nasional Bhd and Royal Dutch Shell Plc, citing sources with knowledge of the matter.

Bloomberg said the trading firm took speculative positions on physical and paper LNG trades over the last few years but was now unable to meet its debts.

Global LNG prices saw record volatility this year, particularly in Asia as the sustained cold snap across North Asia in January led to major shortages of gas across the regions.

The Asian LNG Japan-Korea Marker (JKM) benchmark 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.