Asian LNG spot prices reach four-year high as Hormuz disruption tightens global supply ahead of winter

Asian LNG spot prices for December delivery rose to $29.30 per MMBtu on October 16, their highest level since December 2022, as security concerns near the Strait of Hormuz and competition with Europe supported prices, according to multiple industry sources. Trading Economics reported the JKM benchmark at $29.93 per MMBtu on October 16, up 168.51 percent year-on-year. European TTF prices stood at approximately $28.51 per MMBtu, while US Henry Hub traded near $3.12 per MMBtu. The Strait of Hormuz disruption has cut global LNG supply by approximately 20 percent, according to multiple sources including the IEA, ACER, GlobalData, and an October 18 Stockhead article citing industry analysts. Qatar and the UAE together account for roughly one-fifth of global LNG trade, and shipping through the strait remains approximately 70 percent below pre-conflict levels as of mid-October. Asian buyers have increasingly turned to Australian supplies, with some recent Queensland cargoes commanding prices above $24 per MMBtu, Stockhead reported.

Energy-intensive industries in Asia including chemicals, steel, and fertilizers face LNG prices roughly ten times the US industrial gas price, eroding competitive position. Higher LNG import costs feed directly into electricity tariffs and inflation, particularly in Japan, South Korea, Taiwan, and Southeast Asian importers with limited pipeline alternatives. EU gas storage stood at 74.1 percent full on October 16, far lower than typical levels for this time of year, according to Trading Economics, intensifying competition between Europe and Asia for available cargoes ahead of the northern winter.

Sources

Rallies.ai (UNG News), Asian spot LNG prices hit highest level in nearly 4 years as competition with Europe intensifies, October 16, 2026, rallies.ai; Trading Economics, Liquefied Natural Gas Japan Korea Price Chart Historical Data News, October 16, 2026, tradingeconomics.com; LNG Price Index, LNG Price Today JKM TTF Henry Hub, October 16, 2026, lngpriceindex.com; Stockhead, Queensland onshore gas could feed LNG headed to Asia, October 18, 2026 (article dateModified October 18, 2026, 23:00:38 AEDT), stockhead.com.au; IEA, Middle East crisis disrupts international natural gas markets and delays global LNG supply wave, accessed October 19, 2026, iea.org; ACER, Analysis of the European LNG market developments 2026 Monitoring Report, 2026, acer.europa.eu; Trading Economics, EU Natural Gas Price Chart Historical Data News, October 16, 2026, tradingeconomics.com; Türkiye Today, Tugboat hit by projectiles off UAE LNG tanker comes under fire near Yemen, October 18, 2026, turkiyetoday.com