Recently, Pakistan faced an unexpected rise in the prices of Asian LNG as the demand for air conditioning units increased due to the change in temperature. The report says that people In Pakistan have stocked up the power-generating fuel in anticipation of the rise in the temperature due to heat.
For the last many years, Pakistan has been facing a swift change in the climate. The weather in summers has become so hot that the buyers are demanding for more air conditioning units to beat the heat.
According to the industry, it was estimated that the price of average LNG for July delivery to Northeast Asia LNG-AS will be about $10.30 per million British thermal units (mmBtu), up the 70 cents from the past week.
We expect the weather to change further across the Asian countries. Beijing, Tokyo, Seoul, and Shanghai are also expecting to witness the highest temperature in the coming two weeks, according to the weather data retrieved from Refinitiv Eikon. Hence, there will be an increased demand for the gas to equip the cooling systems in the houses and offices.
Other than this, the spot LNG prices often go on the peak with the change in the season across northern hemisphere winter and summer periods. Wood Mackenzie also added in the news that people require gas for heating in the air conditioning in winters hence, the demand for LNG remains higher throughout the year.
He also said in a note that the coming season of winters is going to be tough and tighter due to the higher demand.
Although the buyers in Pakistan are investing in different sources, every genset supplier across the country is noticing the highest demand of the universal systems to be installed in the houses. Other than this, a high-quality solar panel in Pakistan is also one of the sources to beat the climate’s harshness in the country.
The supply coming from the United States, which also made up to the highest levels in history last month, has also decreased in the past week. The greatest change in the supply was recorded due to the seasonal maintenance in the export plants.
As per the record of traders, Trafigura delivered cargo to Vitol between July 17 and July 21 in Tianjin, China. It consisted of the premium LNG of worth $1.45 per mmBtu over European LNG prices.
Origins of more than $1 per mmBtu often cost long-distance travel in Asia, sailing the East.
However, consumers do not want to pay for these well-provided loads of more than $10 / mmBtu, one customer said.
Petronas sold two trades for a transfer between July 7-8 and July 23-24 in North Asia for more than $10 per mmBtu, a trader said.
Guangzhou Gas Group bought goods for the June 27 delivery in Dapeng together at around $10 per mmBtu, the source company said.
Shizuoka Gas of Japan bought shipping for the second half of September from Papua New Guinea LNG for about $10.30 per mmBtu, one company said.
In the coming time, Asian countries shall expect the changes in delivery of the supply since exports are delayed and are priced higher too. However, the industry is struggling really hard to supply a greater amount of LNG at the best prices.
On the other hand, buyers are finding other sources to get rid of the heat. For instance, Pakistan has developed the best water treatment plants so that the economy may not find difficulty in achieving other important sources of living. Several water filter plant suppliers are now providing the buyers with great opportunities to achieve a clean and healthy water system in the nation.
The nation expects to see a vital change to cope with the rising temperature and initiate developments accordingly.