Asia LNG Prices Soar as Hormuz Blockage Continues

Spot LNG prices in Asia have reached a five-month high due to ongoing blockages through the Strait of Hormuz. Traders told Bloomberg that the price jumped to $24.614 per million British thermal units (MMBtu) on Tuesday, surpassing the previous day's price of $23.388 per MMBtu.

The increase in prices comes after Qatar's state-owned firm QatarEnergy extended its force majeure on LNG deliveries into November, citing the still-blocked transits through the Strait of Hormuz. This decision was made at the end of last week and has had a ripple effect on prices in both Asia and Europe.

The rally in LNG and gas prices continued this week after the U.S. and Iran exchanged fire for the first time in over a month, intensifying concerns about LNG supply from the Middle East. South Asian buyers, including Pakistan and Bangladesh, are seeking spot supplies to replace term supplies from Qatar that cannot leave the Persian Gulf.