Asian LNG Prices Soar to Two-Year High Amid Middle East Tensions
Asian liquefied natural gas (LNG) prices have reached their highest level since December 2022, driven by escalating tensions in the Middle East and strong demand ahead of winter.
The average price for October delivery into north-east Asia is estimated at $26.00 per million British thermal units (mmBtu), up from $25.70/mmBtu last week.
Klaas Dozeman, market analyst at Brainchild Commodity Intelligence, said that attacks on ships in the Middle East have reduced LNG shipments from the region, leaving several South-Asian countries with no choice but to bid for spot cargoes at 'unpleasant prices'.
Bangladesh and South Korea were among the main Asian buyers of spot cargoes over the past week, with Kogas purchasing around 14 to 20 cargoes for November to January delivery, and Bangladesh buying 20 cargoes from October to June.