Asian gas price surge after Russian pipeline maintenance pushes European prices to record highs

Producers offered to buy LNG shipments for the winter at more than $60 per million British thermal units on Monday, traders said. The Japan-Korea market index fell 1.3 percent on Friday ahead of Gazprom PJSC’s announcement. to $55.277 per million thermal units, they said, citing data from S&P Global. Prices have risen for five consecutive weeks and are currently triple last year’s level.
Gazprom announced on Friday that on August 31 will shut down the main Nord Stream gas pipeline for maintenance for three days, sending prices up to record highs in Europe. LNG traders in Asia have expressed concern that the link will not be activated in time, further weighing on global markets after Russia gradually cut supplies to Europe, its biggest customer.
Gazprom said on Friday that it would restore Baltic Sea shipments to Germany to current levels of around 20 percent. capacity – “upon completion of work and in the absence of technical failures”.
European and Asian utilities compete directly for LNG shipments from suppliers including the United States, Qatar and Nigeria, with traders engaged in bidding wars to secure shipments. Japan and South Korea are currently trying to buy more LNG for the winter, which has helped push prices to record highs for this time of year.

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