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LNG prices in Asia plunge 43% as new US supply hits market

Production at new fields in Australia and Russia adding to glut

Major LNG development projects have been launched around the world in recent years.   © Reuters

TOKYO -- The price of liquefied natural gas has plunged 43% from a year ago as supply outstripped demand, and analysts say there's little room for an uptick in the near future given strong competition and a slowing global economy.

Despite the prospect of winter, spot LNG prices in Asia have fallen to around $5.70 per million British thermal units, from over $10 in the same period last year. This is in large part due to the production of the gas at new fields in the U.S., Australia and elsewhere. LNG prices were even higher at nearly $20 in the winter of 2014.

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