The last LNG price surge caused China and India to slow spot purchases
Rallying LNG prices put pressure on buyers
High prices are already having an impact on consumption in emerging markets and might soon affect demand from key importers
LNG prices are being supported by a “perfect storm” of factors, says Peter Lee, senior analyst at consultancy Fitch Solutions. And many in the sector expect the market to remain strong going into the northern hemisphere’s winter, particularly given the unusually low stock levels in Europe, although mild temperatures and/or a Covid resurgence could potentially undercut that support. Emerging LNG markets are typically more dependent on spot cargoes than long-term contracted volumes. Two such markets are Pakistan and Bangladesh, which have already cancelled LNG tenders due to the strength of the spot market, with prices as high as $20/mn Btu being quoted for Pakistan. “Aside from South A
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