Reuters: High LNG PricesThreaten Asia Demand Growth

“Skyrocketing prices of liquefied natural gas (LNG) could soon cut into demand growth and delay import infrastructure projects in India, the Philippines and other Asian countries, industry executives said on Tuesday. Asian spot LNG prices have surged to above $16 per million British thermal units (mmBtu) since the March 11 earthquake and tsunami in Japan, when prices stood around $10 per mmBtu. . . . China’s appetite for LNG could also be affected if prices continue to rally since importers already lose billions of dollars a year due to government policy requiring the use of long-term contracts, said Stephen Thompson, Asia Pacific LNG manager for Poten & Partners. Chinese LNG demand is expected to reach more than 30 million tonnes a year by 2015, and the nation is expected to surpass South Korea as the No. 2 LNG importer by around 2020.”