Liquefied Natural Gas Price Trend and Forecast

Liquefied Natural Gas Regional Price Overview

Get the latest insights on price movement and trend analysis of Liquefied Natural Gas in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Liquefied Natural Gas Price Trend for the First Half of 2024

In the first half of 2024, the global liquefied natural gas (LNG) market experienced significant price volatility driven by robust demand, supply disruptions, and geopolitical uncertainties. Asian markets, particularly India, faced steep price increases as the Asian spot LNG benchmark surged by over 60%, outpacing oil-indexed term contracts. The high prices strained India’s gas-based power generation sector, forcing reliance on costly spot LNG due to limited-term supply options. This situation led to economic challenges, including higher energy costs and potential power disruptions during heatwaves.
 

Liquefied Natural Gas Price Chart

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The ripple effects were felt across Asia, with countries like Pakistan and Bangladesh delaying LNG procurements due to financial constraints. Meanwhile, Europe’s LNG imports decreased by 40% due to lower demand and high storage levels, but the strong Asian demand exerted upward pressure on global prices. Supply disruptions in key LNG-producing regions, coupled with geopolitical tensions, further tightened the market, contributing to the ongoing price volatility. As the global LNG market remains in flux, the high costs are pushing countries to reconsider their energy strategies, with long-term implications for energy security and economic stability.

Analyst Insight

According to Procurement Resource, LNG prices are likely to grow even more as the demands are rising in the coming months given the current global scenario.
 

Liquefied Natural Gas Price Trend for the Second Half of 2023

In the second half of 2023, liquefied natural gas (LNG) prices experienced upward pressure due to a combination of rising demand and record feed-gas flows to U.S. LNG export plants. Despite record natural gas production in the U.S. and relatively mild weather conditions that reduced heating demand, the global LNG market remained tight, driven by strong international demand and ongoing supply disruptions.

Europe's gas storage levels reached near capacity, but robust consumption in Asia, coupled with geopolitical tensions affecting supply chains, continued to push LNG prices higher. Additionally, the U.S. solidified its position as the world's leading LNG supplier as global buyers sought alternatives to disrupted Russian supplies. This elevated global demand, particularly in Europe and Asia, kept LNG prices buoyant, even as domestic U.S. gas prices remained relatively stable due to ample supply and reduced local demand. The market's dynamics were further complicated by delays in new LNG export capacity coming online, contributing to continued price volatility in the LNG sector.

Analyst Insight

According to Procurement Resource, with increasingly rising global demands the LNG prices are likely to elevate even more in the coming months of 2024.
 

Liquefied Natural Gas Price Trend for First Half of 2023

Despite the anticipated increase in domestic natural gas production, India continues to be heavily dependent on LNG imports due to the growth in its natural gas consumption in the fertilizer and city gas distribution sectors.

The spot prices, however, were extremely high and volatile at the beginning of the first quarter of 2023. But soon enough, the prices stabilized and eventually declined in Q2. The Asian LNG demand has lagged in 2023, but the region's LNG import capacity is growing gradually as it is supported by investments in transmission and distribution infrastructure.

Many nations are also entering the market, China's capacity for regasification is growing quickly, and India is still committed to significantly increasing the gas part of the energy mix at the expense of coal. Asian LNG demand should therefore resume growing, but it is also shifting toward more price-sensitive countries.

Analyst Insight

According to Procurement Resource, the price trend of Liquefied Natural Gas is expected to grow in the upcoming months as the demand from the Asian region is estimated to incline with the rise in the growing infrastructure sector and consumption rates.  

Procurement Resource provides latest prices of Liquefied Natural Gas. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.