Theoretically speaking LNG is an abbreviation for liquefied natural gas, which has been created through the transformation of organic elements such as plankton and algae over millions of years.  China and India are the two primary nations that have led the resurgence in LNG demand since the pandemic's outbreak, with both boosting their LNG imports by 11%. China's announcement of an aim to become carbon neutral by 2060 is likely to drive increase in its LNG consumption due to the critical role gas may play in decarbonizing complicated industries. India increased imports as it used lower-cost LNG to complement its local gas output.

 I bet most of it slipped right through your head and now you’re wondering why do we even need to know this information and how is LNG relevant in our life.. When you switch on a light or fire up the stove, do you think about where your energy comes from? Probably not, until the lights go off. Now let’s image that you face a long power cut and you’re wondering why hasn’t the power come back yet, moreover where does this power even come from? The answer is LNG! LNG as a gas comes handy in our day to day life

 Population growth, rising growth and prosperity in developing countries, government regulation, and efforts aimed at improving air quality will increase worldwide demand for lower-carbon energy, particularly natural gas. As a consequence of its lower carbon footprint and flexibility to supply increasingly diversified markets, consumers, and applications ranging from power production to land and maritime transportation, LNG will demand a growing proportion of global fuel mix.

 "The rise in gas-on-gas LNG imports in 2020 reflected another sharp rise in spot LNG cargoes," says the International Gas Union survey published on July 8, 2021. The rapid growth in gas-on-gas price in LNG imports was a result of ongoing three years' pattern. In 2016, the overall gas-on-gas price share of LNG imports was 25%, and by 2020, it had increased to 44%. With this increase in the import, the prices of LNG has also drastically increased.

 What are the key supply variables influencing LNG prices?

 The three primary supply-related variables influencing LNG spot pricing are as follows:

 1.      The amount of natural gas produced

2.      Natural gas storage capacity

3.    Import and export volumes of natural gas

 What are the key demand variables influencing LNG prices?

 The three primary demand-related variables influencing LNG spot pricing are as follows:

 1.       Weather changes in the winter and summer

2.       Economic growth rate