Daily Management Review

World's largest LNG buyer warns of risk of price hike in 2023


According to Bloomberg, Yukio Kani, Head of the world's largest purchaser of liquefied natural gas Japanese Jera energy business, there is a chance that prices would increase this year, particularly if the upcoming winter is chilly.

In an interview with Bloomberg, Mr. Kani claimed that there has been a big decrease in the price of LNG spot purchases because of coronavirus restrictions in China and a warm winter.

However, this year there is a risk of a significant increase in gas prices because of growing import capacity in Europe, loosening coronavirus restrictions in China, and the arrival of a cold winter, according to Mr. Kani.

European natural gas prices are still declining in April. Bloomberg notes that the price reduction was caused by the shift in demand from heating needs to securing supply for the following winter.

source: bloomberg.com