Soaring temperatures are pushing Asian LNG buyers into the market to cover power demand, keeping Japan-Korea Marker prices at a premium to the Dutch Title Transfer Facility (TTF) benchmark. 

Asia Prices

Asia, along with North America and Latin America, are facing El Niño weather conditions causing a surge in cooling demand around the globe. 

“We think recent gas price developments could be a result of stronger Asian liquified natural gas demand and relatively weaker European demand,” Kpler analyst Ryhana Rasidi told NGI.

Kpler anticipates some LNG restocking in countries like Japan to take place at this time of year so it is likely there will be additional LNG demand in the region, on top of cooling requirements during summer. 

China has experienced high temperatures since March,...