As observed, the price of Natural Gas surged to its new height with an increase in demand from the downstream derivative market amid accelerating tension between Russia and Ukraine. As of 23rd March, the Henry Hub spot prices surged to $5.26 per MMBtu with an increment of 12.63% compared to the prices on 16th March, where the prices were $4.67/MMBtu. In India, PNG prices were also increased. Adani Total Gas Limited and Gujarat Gas Limited have imposed forced Majeure in LNG plants for their industrial customers. The price of Natural Gas had revised in the region and limited the production units to 80% of their daily contract quantity. In China, the cost of Natural Gas has also surged with the growing geopolitical tension of the Russia-Ukraine war. On 23rd March, the downstream Methanol market remained strong where the domestic price was observed to be $477/ton with robust coal prices in the regional market. The production cost among the enterprises increases with deterred operating rates.

On 25th March, the US and European Union (EU) joint task force to provide the 15 billion cubic centimeters of Liquefied Natural Gas (LNG) to Europe, which will slow the market tension.  The production rates of major Petrochemical, refineries, and power generation enterprises slashed, and producers are looking forward to using other energy sources to provide cost support.  The energy policies are reducing in the European region, soaring friction between security and climate goals.  US President Biden will help boost the LNG exports to the European region, increasing the supply of its derivative with an increase in the production rates.

According to ChemAnalyst, the price of Natural Gas will surge in the international market amid ongoing tension between Russia-Ukraine. The decrease in supply and accelerating demand will further boost the price. During periods of economic growth, an increase in demand for goods and services from commercial and industrial sectors may increase Natural Gas consumption. With an increase in demand, its storage and transportation costs will also surge.