International LNG prices have surged in recent weeks as the combination of a cold snap in Asia and shipping constraints in the Panama Canal and elsewhere leave buyers in Japan, South Korea, and China scrambling for cargoes.
Front month futures (see chart) spiked above $17 at the Japan-Korea Marker on Friday while spot prices were assessed at record highs above $20/MMBtu on the Asian benchmark late last week.
Spot shipping rates in the Atlantic were reported as high as $300,000/day on Friday as Asia competed to pull on an already low stock of vessels from the basin.
While the frenzy ensues in markets around the world, US LNG terminals continue to run near max capacity while flows to Henry Hub were measured at a comfortable $2.725/MMBtu over the weekend.
Source: Gelber & Associates
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