(Oct 20): Asian liquefied natural gas (LNG) prices rose to the highest in almost four years, as attacks on tankers in the Middle East damped hopes for a recovery in exports from the war-torn region.

Spot prices jumped to US$30.4 per million British thermal units on Monday, according to traders, the highest since December 2022. The UK Maritime Trade Operations received a report over the weekend that an LNG carrier was fired on near Yemen on Saturday, part of a recent increase in strikes on oil and gas vessels in the Red Sea and Strait of Hormuz.

The US-Iran war has trapped most Qatari LNG production, which used to account for about a fifth of global supply, behind Hormuz, forcing buyers to turn to the more expensive spot market as they can’t get enough contracted deliveries. That’s coinciding with an increase in demand as the Northern Hemisphere winter approaches, pushing prices to three times the level they were at before the conflict started in late February.

Some Asian buyers are continuing to buy spot shipments at the high price levels, intensifying competition for the super-chilled fuel with Europe. Gas-storage levels there are at 75% full, compared with a five-year seasonal average of 89%.

The energy crunch is boosting household power bills and inflation, while forcing some economies to rely more heavily on coal. South Korea’s energy minister said last week that the country would lean on the dirtiest fossil fuel and nuclear power to cope with a jump in electricity demand over winter.

Uploaded by Liza Shireen Koshy