Asian LNG Prices Soar on Shipping Disruptions
Asian liquefied natural gas (LNG) prices have reached a four-month high due to concerns about shipping disruptions in the region. The average price for September delivery into northeast Asia was estimated at $22 per million British thermal units (mmBtu), up from last week's $20.10/mmBtu.
The price increase is attributed to the ongoing tensions between the US and Iran, which have resulted in reduced shipping through the Strait of Hormuz. Industry analyst Kesher Sumeet noted that many shippers previously willing to do 'dark transits' have paused, leading to a decrease in transit conditions.
Risks from the conflict have also spread to the Red Sea after attacks by Yemen's Houthis near the Bab el-Mandeb strait. This has further disrupted oil shipments and led to higher prices for LNG.