Liquefied Natural Gas (LNG) Prices Overview

Market Overview

Quarterly Update on Global LNG Market
 
For the Quarter Ending December 2020
 
Asia-Pacific (APAC)
 
During Q4 2020, North-eastern Asia region saw an enormous surge in the LNG demand as the winter season hit the continent causing unexpected shrinkage in regional supplies exacerbated by lack of shipping availability. The sudden demand surge, production issues in Australia and Malaysia-two key exporters to the Asian market and undue delays due to congestion at Panama Canal further added to tight supply. Combination of these factors triggered a sharp spike in the LNG price across Asia which increased almost by five-times since the 2nd quarter, when the pandemic had driven them below USD 2.00 per MMBtu due to COVID-led disruptions. In December, PetroChina and China National Offshore Oil Corp. (CNOOC) organized global bids for procuring LNG volumes on Shanghai Petroleum and Natural Gas Exchange Shanghai as lower-than-average temperatures and picked-up manufacturing activity soared the regional demand. The Japan-Korea Marker (JKM) benchmark jumped impressively to touch USD 6.8/MMBtu in November. In addition, the UK benchmark NBP and TTF in the Netherlands were also trading in the range of USD 5-6/MMBtu range after collapsing below USD 2/MMBtu at times in the month of May. The positive revisions in the global prices going into the winter months suggest that there is still scope for the LNG demand to grow in the coming months. India’s increased focus on switching from coal-to-gas joined by China and other Asian countries is likely to propel the Asian LNG demand in 2021.
 
North America
 
North American LNG exporters seemed more confident about upcoming projects due to a sharp surge witnessed in the global prices because of soaring Asian demand. With spot LNG prices in Asia witnessing nearly six years high, US LNG operators showed greater interest in long-term supply deals that could enable developers to build new export plants. U.S. LNG exports set a fresh record in December, averaging around 9.8 billion cubic feet per day. Soaring export demand from the power sectors further driven by investments in the Methanol and fertilizer projects became the key end-use sectors driving the US LNG market during Q4. Rising demand of LNG pushed the Mexican government to announce massive investment in nine energy projects out of a total of 29 infrastructural projects, all focused around Natural Gas as revealed during the quarter-end during the second public-private infrastructure plan. The country’s three projects are being developed in the pacific region in the coming years due to rising import demand for cheap and reliable LNG from North America via the shortest transport route.
 
Middle East and Africa
 

Strong increment in demand for North East Asian LNG prompted middle east to remain in the limelight in the global LNG domain. Leading LNG producer, Qatar was heard diverting some of its cargoes from Europe to Asia due to skyrocketing heating demand due to winter chills. During mid-October, around the 210,000 cbm was directed from Qatar to the Suez Canal, scheduled for delivery to a European consumer, was heard turning around to head back east instead. It later took its course to China. Looking at the expanding scope of LNG for supporting the establishment of gas-based economy in India, the Qatar government set up a task force in the year-end to identify investment projects in the country.

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Services
Market Analysis

Company-wise installed capacity, production volume and plant operating efficiency is captured directly from manufacturers. Import and Export volume is captured from government sources and demand for Acrylonitrile is calculated considering the production, import, export and inventory-levels on the country and regional level markets.

Pricing Analysis

Acrylonitrile price is correlated with the price trend of crude oil, demand-supply gap, Propylene and with movement across the downstream derivatives such as acrylonitrile-butadiene-styrene (ABS), styrene-acrylonitrile (SAN) etc.

Company Profile

Basic details and information on financial performance of leading global players in the Acrylonitrile market is presented in a visually captivating manner. Expansion plans and the company’s strategy is also captured to understand the vision and mission of the company to help understand the areas where companies need to focus more.

News & Deals

Daily updates on industry-specific and product-specific news, exclusive primary-based news capturing plant shutdowns/outages/closures, capacity expansions, operating rates, insights on demand-supply situation, awarding of technology licenses, new product launch and deals specifying mergers and acquisitions, strategic investments and disinvestments, to help players capitalize on market opportunity.

Methodology

ChemAnalyst gathers information through primary research surveys conducted with various LNG manufacturers, spread across the domestic and international market, suppliers and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated and presented in chronological order to depict a meaningful and clear picture of the concerned market.
 
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global LNG market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics and strike out a balance amidst market volatility.
 
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
 
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence Global LNG market.
 
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, suppliers, traders and importers and customers on daily, weekly, monthly, and yearly basis.
 

Finally, region-specific markets for LNG are analyzed and region-wise demand pattern is tracked.

About

Liquified Natural Gas (LNG) is a clear, colorless, and environment friendly liquid which is found in deposits at least 4500 meters below the earth surface. Techniques such as hydraulic fracturing or ‘fracking’, vertical drilling and acidizing are the common practices to extract natural gas from the earth. When natural gas is cooled to liquid state at -162deg Celsius, the cooling process shrinks the volume of the gas around 600 times, making it easier and safer to store and ship. The liquefication of Natural Gas is a way to transport natural gas to long distances when pipeline transport is not feasible. In its compact liquid form, natural gas can be shipped in special tankers to terminals where LNG undergoes regasification to be further transported through pipelines for distribution purposes. Natural gas finds usage across several applications. Residentially, it is used for cooking, home heaters and generating electricity, while for commercial purposes it is used for heating, generating electricity and manufacturing products like fertilizers, paints, medicines and at times fueling commercial vehicles.