The lingering side effects of the coronavirus outbreak has further distressed liquefied natural gas (LNG) exporters that were already ailing from a saturated global market and historically low prices.
After originating in China, the world’s second largest LNG importer behind Japan, the deadly virus was spreading across the globe by late winter, trimming industrial demand and compounding a dismal pricing environment. Since the beginning of the year, Asian LNG prices have dropped nearly 50%, with March spot prices on the Platts Japan/Korea Marker (JKM) falling below the previous record low of $3.65 MMBtu, according to Jack Fusco, president and CEO of Cheniere Energy, the largest U.S. LNG exporter.
