TOKYO, August 21. /TASS/. Summer prices of liquefied natural gas (LNG) on the spot market surged in Asia to record high levels. The JKM Index [the Japan Korea Marker, showing the price of LNG deliveries to Japan, the Republic of Korea, China and Taiwan) climbed to as high as almost $60 per 1 million British Thermal Units (BTU), which is 12 times above the average summer price before 2019.

"There is no sense to use LNG even at the price of $50 per 1 million BTUs," founder of the Post-oil Strategy Institute Noriaki Oba told TASS. "I believe such high price level is not stable because the number of countries not buying (or unable to buy) will grow, mainly in Asia," the analyst said.

Many factors remain that can affect the LNG prices in future, including unclear prospects of the Australian export after the Australian Competition and Consumer Commission (ACCC) urged local gas producing and export companies to redirect a portion of LNG from the global market to the domestic one in order to reduce the energy shortage in the country, the expert noted.

"We do not know yet whether export restrictions in Australia come into force. Furthermore, other factors will be influential drivers by the next year, including prospects of Freeport LNG [terminal export] return, the situation with electricity in China, and so on," Noriaki Oba said. A price spike may occur in case LNG export restrictions are introduced in Australia, he added.