GLOBAL LNG-Asia spot prices gain on demand support, Mideast conflict risks

In LNG freight, Atlantic rates fell to **$11,750/day**, while Pacific rates eased to **$52,500/day**, said Spark Commodities analyst Qasim Afghan. The U.S. front-month arbitrage to Northeast Asia via the Cape of Good Hope narrowed but still firmly pointed to Europe, while the arbitrage via Panama continued pointing to Asia, he added. While the U.S. arbitrage had been open to Asia since the start of the war, this signal declined and prompt U.S. cargoes were strongly incentivised to deliver to Europe by August, said Afghan. > "The recent drop in Atlantic freight rates has reduced the differential freight cost to Asia, consequently narrowing the arb," said Afghan. > "Looking down the forward curve for the rest of 2026, the U.S. arb to Asia remains closed and firmly pointing to Europe instead, as Europe heads into winter." Northwest Europe DES LNG prices at highest levels since Dec 2022 Asian spot liquefied natural gas (LNG) prices rose for a third straight week to a five-month high, supported by demand in both Asia and Europe, while unresolved Strait of Hormuz transit disruptions stemming from the U.S.-Iran conflict remain an upside risk. The average price for October delivery into northeast Asia LNG-AS was estimated at **$23.20 per million British thermal units (mmBtu)**, the highest since March 20 and up from **$22.50/mmBtu** last week. Industry participants said buying interest from South Asian markets including India and Bangladesh supported the market despite higher prices. Kpler remains bullish on Asian LNG prices, citing factors including slower Chinese domestic gas production, stronger power demand in Thailand and China and continued Indian spot buying, analyst Go Katayama said. > "China remains the strongest incremental demand driver," he said. "Softer near-term cooling demand provides some offset, while continued Hormuz uncertainty remains an upside risk." In Europe, S&P Global Energy assessed its daily Northwest Europe (NWE) LNG price benchmark for cargoes delivered in September on an ex-ship basis (DES) at **$22.82/mmBtu** on Thursday, a **$0.35/mmBtu** discount to the price at the Dutch TTF gas hub. Spark Commodities assessed the September DES NWE price at **$22.867/mmBtu**, while Argus assessed the October price at **$22.67/mmBtu**. > "European gas and LNG prices climbed to multi-year highs as participants priced in the need to attract Atlantic Basin LNG cargoes ahead of winter, with DES NWE rising strongly throughout the week amid growing concern over the region's storage trajectory," said Aly Blakeway, head of Atlantic LNG at S&P Global Energy. > "Inventories stood near 63-65% of capacity, significantly below year-ago levels, while recent injection rates suggest Europe is likely to remain dependent on strong LNG imports through the remainder of the injection season."

GLOBAL LNG-Asia spot prices gain on demand support, Mideast conflict risks

Freight and arbitrage favor Europe

Asia spot LNG prices rise to five-month high

Demand from China, Thailand and India supports outlook

European LNG prices and storage concerns stay elevated

Related News

CrowdStrike <CRWD.O>: Argus Research raises target price to $425 from $230

Korn Ferry <KFY.N>: Truist Securities Raises Target Price to $100 From $80

N-Able Announces $50 Million Increase To Share Repurchase Program

Best Buy announces regular quarterly cash dividend of $0.96 a share

Quilter Cheviot’s Barringer says Nvidia call eases investor concerns