LNG Prices Forecast to Stay High Amid Middle East Disruptions

Chevron Australia's Managing Director Balaji Krishnamurthy predicts that liquefied natural gas (LNG) prices will remain high over the next six months due to supply disruptions from the Middle East. He made this assessment during an interview with Bloomberg TV on the sidelines of the Gastech conference in Bangkok.

Australian LNG is currently trading at a premium in Asia, partly due to Australia's geographical proximity to key demand hubs. Chevron operates two major LNG production projects in Australia: Gorgon and Wheatstone. Combined, these projects account for about 5% of global LNG supply, with capacities of 15.6 million tonnes per year and 8.9 million tonnes per year respectively.

The resumption of LNG flows through the Strait of Hormuz is being delayed, which has led to some cargoes from Qatar and the United Arab Emirates in the Persian Gulf being transferred to other vessels outside the strait. This insufficient supply volume is unable to cover demand ahead of the winter heating season in Asia and Europe.