Asian LNG Prices Surge to Highest Since December as Middle East Tensions Escalate
Asian spot liquefied natural gas 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 was 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, attributed the high prices to 'very little LNG able to make its way out of the Gulf' due to recent attacks on ships in the Middle East.
Bangladesh and South Korea were the main Asian buyers of spot cargoes over the past week, with Kogas buying around 14 to 20 cargoes for November to January delivery.
The tight global LNG market is expected to continue next week, as ongoing planned maintenance in Algeria, Norway, and the Belgian-UK interconnector will restrict pipeline supply into the EU, while LNG imports are expected to edge lower amid emerging competition from Asia and the Americas.