IEA aims to stabilize LNG prices with information-sharing plan

Agency eyes greater transparency as Ukraine war adds to market volatility

20240712N LNG

LNG is in high demand among countries like the U.S. and Japan, despite its price doubling from the average over the past five years. © Reuters

DAISHI CHIBA, Nikkei staff writer

TOKYO -- The International Energy Agency is looking to set up mechanisms to stabilize natural gas prices and facilitate the sale of excess supplies to countries in need as the protracted war in Ukraine continues to squeeze the global market.

The LNG market is smaller than that for crude oil, with much of the fuel sold in essentially off-market transactions. LNG, crucial to Japan's power needs, is also harder to stockpile, leading to greater price volatility.

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