Uniper executive: LNG prices may rise significantly in a volatile market.
John Roper, Uniper's Middle East chief executive, stated on Wednesday that if the supply disruptions and hot weather in Asia coincide with European storage needs, Liquefied Natural Gas (LNG) could be priced higher than they have been during the Iran war.
Roper stated that the current supply disruptions are affecting Asian countries excluding China more than Europe. The 'consequences' will last until 2030, as the damage caused by the Strait of Hormuz closure and the destruction of facilities has taken most of the growth in?LNG supplies from 2025-2026?off the market.
Roper said that despite the current short-term issues gas markets face, the?new projects expected to come online between 2027-2028?will provide a more diversified market in the medium-term, he told the S&P Global Energy Middle East Petroleum and Gas Conference held in London.
LSEG data shows that Asian LNG prices are up 75% since their pre-war levels and now stand at $18.20/mmBtu. Prices reached their highest level in March since December 2022 after Iran struck the Qatar LNG 'Ras Laffan' facility. They hit $25.30.
It is still a far cry from the record high of $70.50/mmBtu set in August 2022, after Russia's full-scale invasion of Ukraine.
(source: Reuters)
