LNG prices to stay tight till summer of 2023 – 17 Nov 2021

Despite the turmoil, LNG sales continue to move up

The fact that the Indian market is highly price-sensitive is evident from the fact that we are one of the very few spots where LNG demand has come down

The sensitivity comes from the fact that the crude equivalent of spot LNG price is $180, higher by $100 from current crude prices

Henry Hub to JKM price arbitrage can still provide a profit of a massive $120 million a cargo load

The prediction now is that LNG prices will come down from their present highs but they will stay tight till the summer of 2023

Lack of ships and high arbitrage have driven up LNG shipping rates as well