China – the “only bright spot” for beleaguered LNG markets in Asia Pacific

China’s early post-COVID demand recovery gives it headroom to absorb spot LNG cargoes on top of contractual supply from Australia and Qatar. With Asia spot LNG priced as low as $2.30 per MMBtu, US LNG deliveries are currently uncompetitive. But the arbitrage window between Henry Hub and the Japan-Korea Market (JKM) is about to reopen. “We expect higher Northeast Asian prices will end the recent practice of cancelling offtake cargoes from US projects from October loadings,” James Whistler, Global Head of Energy Derivatives at SSY told LNG Journal in an interview.

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