COM - Asia's Growing Appetite For LNG
2024-07-03 06:05:00 ET
Summary
- LNG represents an important substitute which offers sustainability, diversification and energy security to Asia, home to more than half the world’s population.
- With considerable amounts of U.S. LNG exports still heading to Asian consumers, the liquidity in CME Henry Hub Natural Gas futures during Asian hours has been growing.
- With more U.S. LNG headed to the region, the relevance of Henry Hub as a key natural gas pricing mechanism could increase for global trades, potentially making it more relevant than ever in price risk management for Asian market participants.
By Adila McHich and Cameron Liao
At a Glance
- Henry Hub Natural Gas futures volume during Asian hours has averaged around 34,000 contracts per day in 2024
- The Energy Information Administration (EIA) estimates that U.S. LNG exports will rise by 2% this year and 18% next year