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

Since May, when the JKM Asian spot LNG price 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.

Click here to see the full-size infographic