By Fauziah Marzuki, BloombergNEF
Taking out seasonality, spot LNG prices were at similar level as contracted LNG prices during 2018 indicating a well-balanced LNG market. However, spot LNG prices in Q1 2019 were at heavy discount to contracted LNG prices even during the winter peak season, reflecting the beginning of a loose market.
Current JKM futures prices suggest spot LNG prices will remain below contracted LNG prices until 2021, a sign of a continued expectation of looseness in the period. Prices, however, will likely surge from 2022, based on our view on the changing demand/supply balance.
Global LNG prices
