Asian LNG Prices Soar Amid Ongoing Strait of Hormuz Blockage
The Strait of Hormuz blockage continues to impact Asian LNG spot prices, which surged to $24.614 per million British thermal units (MMBtu) on Tuesday. This is the highest level in five months, up from $23.388 per MMBtu on Friday.
The price rally follows QatarEnergy's extension of force majeure on its LNG deliveries into November due to the ongoing blockage. South Asian buyers, including Pakistan and Bangladesh, are seeking spot supply to replace term supply from Qatar that cannot leave the Persian Gulf.
Utilities in South Korea, India, Taiwan, and Bangladesh are also looking to buy spot cargoes for October and November, according to tender documents. The escalation of hostilities between the United States and Iran has further intensified concerns about Middle East LNG supply.