Soaring Natural Gas prices showcased a negative impact on the purchases of the Petrochemical derivative products in the Asian market. China has slashed Liquefied Natural Gas (LNG) purchases as bullish global prices lessen the Natural Gas imports and pandemic situations strangle the market sentiments. Towards the end of Q1 2022, the LNG imports in China fell by 14% compared with the same quarter of the previous year. In India, the price of Natural Gas remained on the upper end where the prices were hovering around USD 7.2 per MMBtu Ex-Hazira-7.3 per MMBtu Ex-Hazira when captured on 18th April. From the starting of April month, Central Government had almost doubled the prices of Natural gas for six months in the domestic market. India had linked the prices of domestically traded Natural Gas according to the global benchmarks, including Henry Hub and Russian Gas. Inflation of product prices is more likely to boost the earnings of the Indian producers like ONGC, Oil India Ltd. and Reliance Industries.

Emptied storage and deteriorating inventories had surged the prices of Natural Gas in the US. Increasing exports of Natural Gas to Europe and Asian markets oscillated the price trend. On the 8th April, Natural Gas futures at Henry Hub in Louisiana rose to USD 6.4 per million British thermal units. Natural gas exports from the US to Mexico decreased by 1.8%, and LNG export facilities averaged 12.4 Bcf/day this week. The exports were decreased due to supply shortages and tepid demand in the domestic market. The gasoline and diesel prices in the Netherlands and Denmark were recorded to be higher than in any other region of Europe. The German government had tried their best to cushion the energy values and bullish Natural gas prices but failed to do so, resulting in such a price trajectory.

According to ChemAnalyst, the price of Natural gas will remain robust in the upcoming weeks due to low inventories and emptied stocks after exporting the majority of Natural Gas to the European and Asian markets. Asian gas purchaser is being compelled to import spot LNG at record significant levels, which will probably curb new gas demand growth, speed up demand obliteration for Natural gas, and amplify worries about costlier goods and products. The Natural Gas derivative market, including Methanol and Acetic Acid, is expected to fluctuate with strong market sentiments and insufficient product availability.