{"id":14139,"date":"2022-03-11T06:23:05","date_gmt":"2022-03-11T06:23:05","guid":{"rendered":"https:\/\/energytracker.asia\/?p=14139"},"modified":"2022-11-23T04:39:09","modified_gmt":"2022-11-23T04:39:09","slug":"lng-prices-in-2022-bring-stability-after-2021-volatility","status":"publish","type":"post","link":"https:\/\/energytracker.asia\/lng-prices-in-2022-bring-stability-after-2021-volatility\/","title":{"rendered":"LNG Prices in 2022 Bring Stability after 2021’s Volatility"},"content":{"rendered":"
<\/div>\n

After record-breaking prices in 2021, Liquefied Natural Gas (LNG) prices<\/a> <\/strong>may see more stability in 2022. Already, LNG is shaping up to be one of the world\u2019s most essential and most significant energy sources of the decade as countries shift away from petrol-based power. LNG exports are also rising. Singapore LNG<\/a> hub is the new sensation in Asian. While LNG is still a fossil fuel with high carbon emissions, it is also a bridge fuel<\/a> for many nations unable to transition to renewable energy due to lack of capacity or infrastructure. <\/p>\n\n\n\n

Natural Gas Futures<\/h2>\n\n\n\n

As a result, natural gas’ futures exploded, with demand for LNG expected to double by 2040<\/a>. In 2021, natural gas prices rose significantly. While it is still more economically viable than other fossil fuels, it has raised questions about what the market will look like in the coming years.<\/p>\n\n\n\n

What is LNG Price per Metric Million British Thermal Units??<\/h2>\n\n\n\n

The factors affecting natural gas prices are similar to those regulating other forms of power\u2014namely supply, demand, weather and the costs of different energy sources. For example, cold winters and high prices of other energy sources can drive up demand for LNG, increasing its price. This was what happened in Europe in 2021 when prices rose to USD 38.03 per million British Thermal Units (MMBTU). Previous peaks in 2020 and 2019<\/a> were USD 5.85 per MMBTU and USD 7.26 MMBTU, respectively. In Asia, spot prices hit a high<\/a> of USD 48.30 per MMBTU in late December, partially resulting from rising prices in Europe.<\/p>\n\n\n\n

\"LNG
Source: OilPrice.com<\/a><\/figcaption><\/figure><\/div>\n\n\n\n

How Much Does LNG Cost per Tonne?<\/h2>\n\n\n\n

The current prices represent historic highs for LNG production. The highs, as mentioned above, were unprecedented and represented price increases of over 300% compared to the previous year. The United States, which has its own domestic LNG operations, also saw peaks early<\/a> in the year. This propelled prices to over USD 10.00 per MMBTU from its usual hovering price of around USD 3.00 per MMBTU. While this is high, it\u2019s still below the historical peak of USD 20.81 per MMBTU in 2005.<\/p>\n\n\n\n

Why Are Liquefied Natural Gas Prices High?<\/h2>\n\n\n\n

In 2022, prices of LNG look to remain relatively stable as the year progresses. However, these LNG prices <\/strong>will likely be at higher levels than before and are due to several factors<\/a>, including:<\/p>\n\n\n\n