Natural gas prices in Asia fall to pre-Ukraine war levels on China shift

Beijing buys more LNG long-term contracts as it seeks energy stability

The floating LNG terminal Neptune was commissioned in Germany during January. The country raced to secure gas after supplies from Russia were cut off. © Reuters

YUTA KOGA, Nikkei staff writer

May 23, 2023 03:19 JST

TOKYO -- A benchmark for natural gas prices in Asia has dropped to levels last seen before Russia's February 2022 invasion of Ukraine as China, one of the world's biggest consumers of the fuel, changes its buying patterns.

The Refinitiv-calculated spot price for liquefied natural gas in Asia dipped to $9.80 per million British thermal units on Friday, falling below $10 for the first time since May 2021. The price is down about 90% since hitting the $70 range last summer.