Asian liquefied natural gas traders are rushing to secure shipments from the U.S., where prices are among the cheapest in the world, amid a dash to replenish supply before the winter.
Firms in China and Japan, the two biggest importers, are seeking to procure LNG specifically from the U.S., and are in discussions with exporters and portfolio players to lock in deliveries through March, according to traders with knowledge of the matter. The companies want LNG linked to the Henry Hub index, the U.S. benchmark that’s trading at a fraction of prices in Asia and Europe.
A global energy squeeze has sent prices for gas and coal surging from Australia to the Netherlands. Utilities are busy stocking up on fuel before winter descends on the Northern Hemisphere and heating demand soars.