Spot LNG prices in Asia jumped on Tuesday to the highest level since the 2026 winter, as buyers compete for spot cargoes amid the still-stalled LNG traffic through the Strait of Hormuz.
Asia’s spot LNG price jumped to as high as $24.614 per million British thermal units (MMBtu) on Tuesday, traders told Bloomberg.
This was higher than the $23.388 per MMBtu from Friday, and the highest spot price for LNG deliveries into Asia in five months.
Prices in both Asia and Europe had jumped at the end of last week after Qatar’s state-owned firm QatarEnergy extended the force majeure on its LNG deliveries into November amid still-blocked transits through the Strait of Hormuz.
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The LNG and gas price rally continued into this week after the U.S. and Iran exchanged fire for the first time in more than a month.
Prices in Asia were driven by south Asian buyers, including Pakistan and Bangladesh, seeking spot supply to replace term supply from Qatar that cannot leave the Persian Gulf.
Per tender documents seen by Bloomberg, utilities in South Korea, India, Taiwan, and Bangladesh are looking to buy spot cargoes for October and November.
European benchmark natural gas prices also jumped by 5% on Monday as the re-escalation of hostilities between the United States and Iran intensified concerns about LNG supply from the Middle East.
The benchmark price at the Dutch Title Transfer Facility (TTF) soared by 5% to top 70 euros, or $81.20, per megawatt-hour (MWh), after the U.S. and Iran resumed trading strikes for the first time in more than a month.
This was the highest price the front-month benchmark futures have seen in more than three and a half years, since January 2023.
Europe’s gas prices continued to rally on Tuesday, with the front-month futures up by 2% to $82.60 (71.20 euros) per MWh in morning trade, Amsterdam time.
By Charles Kennedy for Oilprice.com
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