LNG price bonanza: JKM spot price rallies to record high in 2021

Since May, when the JKM Asian spot LNG price(opens in a new tab) bottomed out below $2/MMBtu due to oversupply, the market has enjoyed a remarkable rally, the JKM increasing more than 16-fold to a record high of $32.50/MMBtu in January.

This was driven first by an unprecedented supply-side response to low prices, with US LNG cancellations starting to rebalance the market through the summer, followed by strong winter buying demand from Asian buyers in the fall and a number of supply-side issues.

Since the start of 2021, cargo shortages, transportation bottlenecks, record shipping rates, and plunging winter temperatures have lent further support to the market.

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