Chevron Australia President Says LNG Prices Will Stay High for Six Months, Australian LNG Now at Premium Due to Proximity to Asia

Liquefied natural gas prices are unlikely to drop in the short term and will remain elevated for approximately the next six months, according to Chevron Corporation's Australia president Balaji Krishnamurthy, speaking to Bloomberg TV on Monday September 14 at the Gastech conference in Bangkok. Krishnamurthy stated Australian LNG is now trading at a premium due to its geographic proximity to Asian buyers, as the US-Iran war has disrupted roughly 20 percent of global LNG flows, primarily affecting shipments from Qatar through the Strait of Hormuz. Chevron operates the Gorgon and Wheatstone LNG projects in Australia and has seen gains from firmer prices following lost Qatari cargoes. US natural gas prices rose to $2.86 per MMBtu on September 13, up 0.9 percent from the previous day, according to Trading Economics, while European natural gas prices climbed above 81 euros per megawatt-hour, the highest level since December 2022, amid rising concerns over the region's gas supply outlook. European gas inventories remain below historical norms as escalating attacks in the Middle East continue to disrupt LNG shipments through Hormuz, which previously handled roughly 20 percent of global gas flows. US gas deliveries to major LNG export facilities increased to 18.1 billion cubic feet per day in September from 17.2 billion cubic feet per day in August, according to Trading Economics, as demand for US LNG from Europe and Asia has risen sharply as buyers seek to replace disrupted Middle Eastern supplies and replenish inventories ahead of the winter heating season. Maintenance in Norway and lower Algerian flows to Italy are also limiting pipeline supplies to Europe, adding to supply risks as Europe nears the end of its summer storage injection season. European gas storage stood at approximately 67 percent full, below historical norms, threatening to further intensify competition for global gas supplies during the winter. This matters because the sustained elevation in LNG prices