India's LNG resurgence may be short-circuited by rising costs of spot fuel

Spot LNG prices in Northeast Asia were at $12.20 per MMBtu, according to US market intelligence agency Energy Intelligence for deliveries four to eight weeks ahead

Industries and power plants using liquefied natural gas (LNG) are facing a threat from a surge in prices of the fuel abroad, especially when gas-fired thermal power generation has increased to cope with greater demand and the expanding economy requiring more gas.

Prices of the Asian spot LNG benchmark went above the oil-indexed term contracts for the first time this week since December, with Platts’ JKM (Japan-Korea Marker) index surging more than 60 per cent since early March, driven by demand growth in Asia, said Greg Molnar, gas analyst at the International Energy Agency (IEA).
 

India’s benchmark gas index GIXI, which