Hormuz Blockage Sends Asia LNG Prices Soaring to Five-Month High

Asia's spot LNG prices surged to their highest level in five months on Tuesday, as buyers scrambled for available cargoes amid ongoing disruptions in the Strait of Hormuz. The price jumped to $24.614 per million British thermal units (MMBtu), according to Bloomberg.

The surge was driven by south Asian buyers, including Pakistan and Bangladesh, seeking spot supply to replace term supplies from Qatar that are unable to leave the Persian Gulf due to the blockage. Utilities in South Korea, India, Taiwan, and Bangladesh are also looking to buy spot cargoes for October and November.

European benchmark natural gas prices also rose by 5% on Monday, with the Dutch Title Transfer Facility (TTF) price reaching a high of $81.20 per megawatt-hour (MWh). This was the highest price seen in over three and a half years, since January 2023.

The rally in gas prices continued into Tuesday, with the front-month futures up by 2% to $82.60 (71.20 euros) per MWh in morning trade, Amsterdam time.