Last week’s record-high spot prices of liquefied natural gas (LNG) in Asia may not hold for long, but the surge could be a sign of what the future holds for natural gas prices globally. The growing LNG trade and the growing importance of LNG on the global gas markets have upended the way part of global gas supply is traded and has made regional gas markets more interconnected. When spot LNG prices rally in north Asia, LNG sellers rush to send cargoes there, leaving fewer LNG supply going to Europe, where natural gas prices rise in a generally tighter market. Gas Markets Increasingly Interconnected This happened at the start of 2021, when surging spot LNG prices in Asia incentivized cargoes going to the region, instead of to Europe, and sent UK prompt wholesale gas prices to a two-year high amid unusually freezing temperatures across Britain. The cold snap raised […]