The cessation of gas transit through Ukraine will change the gas market in Asia - Media.

The halt of gas supplies from Russia to Europe via Ukraine will lead to rising prices for alternative energy sources, making them more competitive compared to Asia, Bloomberg reports. Ukrainian President Volodymyr Zelensky stated that Ukraine hopes for increased gas supplies from the U.S. and other producers to Europe to make prices more accessible. The Russian invasion of Ukraine has led to an energy crisis in Europe and a significant rise in liquefied natural gas (LNG) prices.

'This will further complicate the situation in the LNG market. We believe that this year and possibly next year, the market will remain tense. Supply, especially for LNG, is limited, and we see more risks of rising spot prices for LNG this year and next,' said Scott Darling, managing director of Haitong International Securities.

On Wednesday, gas supplies from Russia to Europe via Ukraine were halted, stopping a long-standing transit. This move was expected after prolonged political disputes. However, Europe will have to replace about 5% of the gas volumes, which may lead to the active use of already reduced reserves, especially for this time of year.

As a result of the supply halt, gas prices have increased significantly. The European gas index for 2024 has risen by more than 50%. So far, this increase has not been fully reflected in the price of LNG used by countries such as Japan and South Korea.