Asia LNG Prices Hit Four-Month High Amid Middle East Shipping Disruptions

London:  Spot prices for liquefied natural gas (LNG) in Asia rose for a fifth consecutive week, reaching their highest level in four months amid mounting concerns over shipping disruptions in the Middle East caused by escalating regional tensions.

The average price of LNG cargoes scheduled for delivery to Northeast Asia in September climbed to USD 22 per million British thermal units (MMBtu), up from USD 20.10 per MMBtu a week earlier, according to Bloomberg data.

Keshir Sumit, an analyst at Energy Aspects, said Asian LNG prices continued to rise as tensions between the United States and Iran intensified. He noted that shipping traffic through the Strait of Hormuz had dropped significantly, while many shipping companies suspended transits due to the absence of any immediate signs of de-escalation.

The conflict has sharply reduced energy shipments and tanker movements through the Strait of Hormuz, a key maritime route that carries around one-fifth of the world’s LNG trade.

Energy analytics firm Kpler revised its outlook for the Strait of Hormuz from a de-escalation scenario to a prolonged crisis scenario. The company forecasts Qatar’s LNG exports to decline to below 27 million metric tonnes in 2026, compared to approximately 80 million metric tonnes in 2025.

Laura Page, Director of Insights for Natural Gas and LNG at Kpler, said the continuation of the crisis is expected to keep LNG prices elevated for a longer period. She projected the Japan-Korea Marker (JKM) to average around USD 19.50 per MMBtu during the second half of 2026, compared with an earlier forecast of USD 14.60 per MMBtu under a de-escalation scenario.

In Europe, LNG prices also remained elevated as countries continued rebuilding gas inventories ahead of winter, increasing competition with Asian buyers for spot cargoes.

Meanwhile, LNG shipping rates in the Atlantic Basin fell to around USD 94,000 per day, while rates in the Pacific Basin remained steady at approximately USD 73,750 per day, with Europe and Asia continuing to be the most attractive destinations for US LNG exports.