Asia's LNG Shortage Drives Shell Stock Surge

Shell's stock price surged by approximately 2.5% to $98.945 on Tuesday afternoon, following a sharp tightening of the global LNG market.

The Asia-Pacific region is experiencing a severe shortage of liquefied natural gas (LNG), with spot prices nearly tripling to around $30 per million British thermal units.

This has forced price-sensitive buyers in China, India, and Pakistan to rely more heavily on coal and oil, rather than LNG.

Shell estimates that 36 million tonnes of Middle Eastern LNG supply have disappeared from the market this year, which is equivalent to two full quarters of its latest LNG sales volume.