Asian LNG Prices Surge on Wider Shipping Disruptions

Asian liquefied natural gas prices have surged to their highest in four months due to concerns about wider shipping disruptions. The average price for September delivery into northeast Asia rose to US$22 per million British thermal units (mmBtu), up from US$20.10/mmBtu last week.

The increase is attributed to the ongoing tensions between the US and Iran, which have severely curtailed Gulf shipments through the Strait of Hormuz. The attacks have also affected tanker traffic, with many shippers pausing their operations due to the uncertainty.

Kesher Sumeet, an analyst at Energy Aspects, noted that Asian LNG prices continued their upward trajectory week-on-week on tit-for-tat attacks between the US and Iran. The risks have now spread to the Red Sea after attacks by Yemen's Houthis near the Bab el-Mandeb strait.

Analytics firm Kpler has revised its base case view on Hormuz from de-escalation to a prolonged crisis scenario, forecasting Qatar's LNG exports to fall below 27 million metric tonnes in 2026. Kpler had previously pegged Qatar's 2025 LNG exports at about 80 million tonnes.