Key facts
- Asian spot LNG prices surged 10% to $20.2/MMBtu, the highest since March.
- Pakistan LNG Ltd paid approximately $20.70/MMBtu for a spot LNG cargo, its highest price in four years.
- Supply disruptions from Qatar due to the Hormuz crisis are impacting global LNG flows.
- Pakistan is planning to purchase additional spot LNG cargoes for July and August delivery.
- Europe's benchmark natural gas prices have also risen due to Middle East shipping disruptions.
Asian spot liquefied natural gas (LNG) prices have surged by 10% in the past week, reaching their highest level since March, driven by renewed Middle East tensions and disruptions to shipping through the Strait of Hormuz. On Thursday, prices hit $20.2 per million British thermal units.
Pakistan LNG Ltd purchased a spot LNG cargo for approximately $20.70 per MMBtu, the highest price the country has paid in four years. This elevated cost is attributed to supply disruptions from Qatar, Pakistan's primary term supplier, exacerbated by the crisis in the Strait of Hormuz. The country is expected to procure the largest number of spot LNG cargoes in a single month since the Iran war began.
Pakistan is reportedly close to finalizing a plan to buy at least one additional LNG cargo for July delivery and as many as six for August delivery. The state-owned Pakistani LNG importer has faced procurement problems since the Iran war began and halted traffic through the Strait of Hormuz.
Europe's benchmark natural gas prices have also risen this week due to the disruptions affecting LNG shipments from the Middle East. The renewed impact on Qatar's LNG exports could tighten the global market as Europe seeks to refill storage facilities ahead of winter.