Increased Chinese demand for liquefied natural gas (LNG) caused by pollution curbs and higher coal prices due to limits on mine production have led Goldman Sachs to lift its spot price forecast for the resource. The bank increased its winter estimate for the LNG Asian benchmark Japan-Korea Marker by 52% to $9.50 per million British thermal units (Btu) while upping its 2020 projections 43% to $8.55. Subject to El Nino-enforced milder temperatures in East Asia occurring, Goldman’s spot Asia LNG forecast for 2019 is $10.75 per million Btu.
Increased Chinese demand for liquefied natural gas (LNG) caused by pollution curbs and higher coal prices due to limits on mine production have led Goldman Sachs to lift its spot price forecast for the resource. The bank increased its 2019 estimate for the LNG Asian benchmark Japan-Korea Marker by 52% to $9.50 per million British thermal units (Btu) while upping its 2020 projections 43% to $8.55. Subject to El Nino-enforced milder temperatures in East Asia occurring, Goldman’s spot Asia LNG forecast for winter is $10.75 per million Btu.