LNG prices in Asia have reached their highest levels since late December, driven by a combination of factors that are stoking demand and tightening supplies.

Since summer is approaching, Asian countries, led by Japan and South Korea, are rushing to secure their energy needs. Which led to an increase in demand for liquefied natural gas to generate electricity.

The heat wave sweeping Southeast Asia is becoming more severe. Which led to a huge increase in demand for liquefied natural gas to cool homes and operate air conditioners.

Major production facilities in Malaysia and Australia are exposed to disruptions that have led to a scarcity of supplies. Which exacerbated price pressures.

As a result, the price of LNG in North Asia increased; Where it is used as the main benchmark, to about $11.5 per million British thermal units, an increase from last week by more than 10%.

Amid this atmosphere, some countries, such as China, may resort to cheaper alternatives such as local gas, while factories in India may prefer petroleum products over liquefied natural gas. Which may lead to market stability or even lower prices.