Sunday, 17 October, 2021

Europe’s energy crunch sparks panic in Asia

LONDON: The energy crunch in Europe is sparking panic among Asian fuel buyers, causing importers from Japan to India to pay a hefty price for supplies.

Worried the eye-watering price of natural gas in Europe will spill over, LNG traders in Asia say they’re paying record prices for this time of year. Buyers in China and Pakistan have also pushed up the price of gas, coal, propane and fuel oil in order to compete with the U.K. and Spain, report agencies.

The scramble for fuel isn’t likely to subside any time soon, with the weather getting colder and energy shortages worldwide. The global price rally is expected to continue through this winter when demand in the northern hemisphere peaks, fueling inflation and putting the fragile economic recovery at risk.

“Asia is panicking a little bit because they had a really bad winter last year,” said Ogan Kose, a managing director and global lead for Integrated Gas at Accenture. Buyers are preparing for another bad winter by ensuring they have enough inventory and are paying top rates for that, he said.