South Asian natural gas buyers including India, Pakistan, Thailand and Bangladesh could return to the spot market as Asian LNG prices fell in January to their lowest levels since 2021.

Asia natural gas prices

Although prices have strengthened somewhat, they are “now low enough to be within the comfort zone of price-sensitive buyers in South Asia,”  said Rystad Energy analyst Kaushal Ramesh.

“Combined with the drawdown effect of the recent cold snap, it could lead to prices being supported at their current levels,” Ramesh told NGI. “However, activity is still muted due to the ongoing Lunar New Year holidays.”

Asian liquefied natural gas spot prices averaged $33-34 in 2022 – an unusual year influenced by the conflict in Ukraine, when prices were more than double the annual average in...