Asian Spot LNG Prices Rise to Highest Since December 2022

en.Wedoany.com Reported - On September 11, the average price of spot liquefied natural gas (LNG) for October delivery in Northeast Asia rose to $26 per million British thermal units, up from $25.70 per million British thermal units the previous week, reaching the highest level since late December 2022. Disrupted shipping in the Middle East, high European gas prices, and pre-winter restocking demand in Asia have combined to intensify competition for spot procurement.

Middle East supply remains affected by restricted shipping through the Strait of Hormuz. On September 10, only 7 vessels transited the Strait of Hormuz, down from a previous 10-day average of 15 and far below the pre-Iran war daily average of about 125. During the same period, 3 LNG carriers linked to QatarEnergy were tracked transiting or operating in the strait, among which Al Marrouna delivered one LNG cargo to Pakistan, marking one of the first known export cargoes completed by a Qatar-linked LNG carrier since July.

Qatar's LNG supply capacity had already been affected by facility damage. QatarEnergy is negotiating medium- and long-term LNG purchases with producers including Venture Global, Cheniere, and Woodside of the United States, seeking about 2 million to 3 million tons per year of supply to cover part of its contractual demand through 2031. After damage to facilities related to Ras Laffan, about 12.8 million tons per year of LNG capacity is offline, and repairs could take years.

Asian buying continued to increase during the same period, with South Korea and Bangladesh becoming major recent spot buyers. The European market is also competing for limited LNG supply, while maintenance at Algerian, Norwegian, and Belgium-UK interconnection facilities further squeezed European pipeline gas supply, intensifying competition for spot resources between Asia and Europe.

European gas prices continue to influence global LNG flows. On September 11, the European TTF price stood at about 82 euros per megawatt-hour; European natural gas inventories had previously fallen to about 66%, a 15-year low for the same period, with inventory levels in Germany and the Netherlands at about 54% and 48%, respectively. After the decline in Middle East LNG exports, new North American supply has not yet fully filled the market gap.