Northeast Asia spot LNG prices rebound to $32 per million British thermal units, approaching the highest level since 2022

⑴ North Asian spot liquefied natural gas prices have rebounded to $32/MMBtu, approaching their highest levels since 2022. The energy market is gradually digesting previous expectations—optimism that the U.S. midterm elections might help resolve Middle East conflicts is cooling. ⑵ After a Qatari liquefied natural gas vessel was attacked last week, Qatar has continued to arrange LNG shipments through the Strait of Hormuz, but the scale remains only a small fraction of what it was before the conflict. ⑶ According to Kpler vessel tracking data, since October 30 at least five Qatari LNG vessels have successfully passed through the Strait; prior to the conflict, about three LNG vessels transited the strait daily. ⑷ Fereidun Fesharaki, Honorary Chairman of FGE, stated that the number of LNG vessels able to pass through the Strait of Hormuz is steadily decreasing. “Once temperatures turn colder, prices will reach $35, or even $45 per MMBtu.”