Global LNG/Asia spot prices hit a fresh 45-month high amid fierce competition for supply

Asian spot liquefied natural gas prices hit a new 45-month high this week as disruptions caused by the conflict in the Middle East and strong South Asia demand ahead of winter continued to support prices and intensify competition with Europe.

The average price for November delivery into north-east Asia LNG-AS was estimated at $27.00 per million British thermal units (mmBtu), the highest since Dec. 30, 2022 and up from $26.00/mmBtu last week.

"Spot global gas prices have traded at high levels over the last week as Europe and Asia continue to compete for cargoes ahead of the winter, with European storage remaining low for the time of year," said Alex Froley, senior LNG analyst at data intelligence firm ICIS.

"The recent surge in prices comes as the market realizes there will likely be no solution before the winter season begins. This could drive up business and household energy bills, which in time will feed into a wider economic impact on inflation and interest rates over coming months," he added.