Australian LNG heads to South Korea and Indonesia, outcompetes thermal coal

LNG buying activity is gaining traction, spurred by rising demand from South Korean independents, second-tier Chinese importers and Indonesian utility buyers – all keen to strike mid-term deals at current low gas prices. In fact, deliveries of oil-indexed LNG cargoes have become competitive with thermal coal prices. Hence imported Australian coal increasingly gets displaced by LNG in markets like South Korea, Japan and Indonesia.

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