Increased LNG demand at high prices from Europe has led LNG providers to cancel supplies to emerging and poor countries, Bloomberg reported on Nov. 7. Afflicted countries include India, Mexico, Bangladesh, Thailand and Pakistan and many others, which cannot compete on price, and whose LNG five-years demand has collapsed as compared to 2021.
“LNG suppliers fear that these nations won’t be able to pay for promised deliveries. Fuel is priced in U.S. dollars, and a single shipment currently costs nearly $100 million. For comparison, LNG shipments averaged $33 million during the 2010s. And costs are higher still in domestic currencies because the dollar has been rapidly appreciating, adding to pressure on the countries’ beleaguered finances.”
