Oversupply leading to declines in Asian LNG spot prices has recently made Europe a top LNG export destination. As Escobar described, in his address, LNG shipments from the Middle East and Africa are not finding homes in Pakistan, Bangladesh or China. As a result, they are being redirected to Europe instead. Indeed, Reuters has reported that many Asian companies, notably South Korea’s KOGAS and China’s PetroChina, having been re-selling LNG cargoes, imported from the US and Russia, to Europe in recent months.
The latest estimates show that Asian LNG spot prices are now at a nearly three-year low (US$4.30 per million Btu). Moreover, it has been stated that prices are only approximately US$1 per million Btu above levels where supply shutdowns might be considered.
