The spot and long-term LNG pricing dynamics have shifted dramatically from 2020 to 2021, with record lows to record highs recorded in a period of nine months.

Brazil is responsible for almost half of the imports into South America for the record month, accounting for almost half of the total demand, or 37 Bcf for the month. Imports into Argentina have also been on the rise as domestic gas production and imports from Bolivia have proved insufficient to meet the projected demand for winter in the Southern Hemisphere.

Wide spreads between the price of LNG in end-user markets in Asia and Europe and feedgas prices based on the US Henry Hub have been incentivizing robust export activity from the US Gulf and Atlantic coasts.

Of the utility's total LNG sales in May, purchases by power generators surged 79.1% year on year to 1.168 million mt and to retail gas companies for households and businesses rose 17% to 1.147 million mt.

In Asia, net-zero carbon ambitions will likely require US LNG to arrive in the form of certified low- or carbon-neutral cargoes,

S Korea's LNG demand has been on the rise on hopes of a postpandemic economic recovery as well as the shutdown of a few nuclear reactors.

Asia's spot LNG market is being supported by unprecedented LNG demand from North Asia, especially China, where economic activity has been relatively robust in 2021 on the back of recovery from the pandemic.

The Ust-Luga project is in line with Russia's plans to boost its LNG production capacity to around 140 Mt/year by 2035 and to raise its global LNG market share to 20%.

This will inevitably increase China's demand for natural gas, including LNG, and boost prices for spot LNG cargoes, similar to the demand surge seen in the winter of 2020-21.

“Officials in the Philippines have endorsed a rapid buildout of LNG import infrastructure due to the anticipated depletion of the Malampaya deepwater development, the country’s only domestic source of natural gas, and high GDP growth expected over the next decade,”