Mitigating Extreme Volatility of LNG Prices in ASEAN: Impacts of High LNG Prices on Southeast Asia
Date:
14 March 2024Category:
EnergyType:
Research Project ReportsTags:
Energy, LNG, liquefied natural gas, LNG prices, Southeast Asia, ASEANPrint Article:
Between 2020 and 2023, the liquefied natural gas (LNG) market witnessed significant fluctuations, with prices oscillating between historic lows and unprecedented highs. Although prices have stabilised somewhat since late 2022, the potential for resurgence remains, posing challenges for Asian economies reliant on spot LNG purchases. This study delves into the causes and consequences of this volatility in the ASEAN region and its neighbouring areas, shedding light on its ramifications for various stakeholders. Additionally, it explores the role of LNG supply from the United States, a key factor shaping global LNG markets. The report seeks to identify strategies for mitigating LNG price volatility, particularly within ASEAN. It advocates for measures to secure reliable long-term supply, enhance contract terms, and achieve a balance between energy security, affordability, sustainability, and the imperative of energy transition. Through comprehensive analysis and policy recommendations, this study aims to foster stability and sustainable growth in the ASEAN LNG market.
