The volatility stems from QatarEnergy’s decision to extend a force majeure on LNG deliveries through November. With critical maritime passages blocked, South Asian utilities in Pakistan, Bangladesh, India, and Taiwan are scrambling to secure spot cargoes to compensate for missing term supplies. This rush for alternative fuel is intensifying competition just as seasonal demand begins to climb.
Asian LNG Prices Spike as Middle East Conflict Disrupts Supply
Spot LNG prices for Asian buyers climbed to $25.908 per million British thermal units on Wednesday, marking a 5% weekly gain. The surge follows renewed military strikes between the United States and Iran, which have effectively paralyzed energy transit routes through the Strait of Hormuz and rattled global markets.
Energy infrastructure remains a focal point of the conflict. President Donald Trump confirmed a heavy strike against Iranian defensive and offensive assets along the Strait of Hormuz, signaling readiness for further action. Meanwhile, the high cost of replacement supply is creating friction; Pakistan recently rejected a BP offer priced above $27 per mmBtu, deeming it unaffordable. As European buyers also face rising gas costs ahead of the winter season, the prospect of normalized LNG flows from the Persian Gulf remains distant, threatening to price out smaller importers from the market entirely.
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