Europe Outbids Asia for LNG Amid Price Surge

Liquefied natural gas (LNG) prices have surged 150% since February due to seasonal demand and reduced Asian imports, according to OilPrice.com.

Asian importers are expecting a decline in LNG demand this month and year, with estimated September flows into Asian countries at 20.09 million tons, down from 22.27 million tons a year ago and 22.25 million tons last month.

However, European buyers are stepping up purchases despite the high prices, with imports on track to increase this month to 7.98 million tons and rising further to as much as 10.53 million tons in October.

The shortfall in LNG supply resulting from Qatar's force majeure was estimated at some 12.8 million tons annually by the country's energy minister earlier this year, with many pinning hopes on new U.S. capacity coming online soon.