Russia- Ukraine conflict and subsequent LNG/ CNG price hike was actually a black swan event… gas prices went up much more than oil prices – Asia spot LNG prices went up more than 10 times!!
While US LNG domestic price has gone below USD 3 due to evacuation constraints, it has helped reduce Asia spot prices to USD 20 levels. When Freeport opens up Asia gas prices will drop to USD 10. Over the next 2 years gas supply will again jump due to new production leading to glut – it will go back to USD 2 levels for spot in Asia/ India.
CNG prices in India will start coming down by March 2023. With ONGC expected to increase supply from KG basin, CNG story will be back and hopefully EKCL will be back to 300…
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