Middle East Tensions Send Asian LNG Prices Soaring
Asian liquefied natural gas (LNG) 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, said that attacks on ships in the Middle East have reduced the amount of LNG available for export, forcing several South-Asian countries to bid for spot cargoes at high prices.
Ronald Pinto, gas research principal analyst at Kpler, noted that renewed tensions in the Strait of Hormuz and increasing European gas prices are contributing to the surge in demand for LNG in Asia.