Summer prices for liquefied natural gas (LNG) in Asia have soared nearly 10-fold in recent years due to fears of fierce competition in the coming years, the Nikkei newspaper writes.

Prior to 2019, average summer spot market prices in Asia were around $5 per million BTU (British Thermal Unit). However, the JKM index, which reflects the cost of LNG supplies to Japan, South Korea, China and Taiwan, rose to $52 per million BTU on July 27. This is despite the fact that traditionally demand for fuel peaks in winter, while gas prices fall in summer.

Due to declining deliveries from Russia, Asian LNG importers are forced to raise their purchase prices in order to remain competitive.