Disruptions in Middle East supply drive up LNG procurement costs, with Europe under the most pressure
智通财经2026/10/26 10:07Show original
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- Rystad Energy analysts stated that global liquefied natural gas (LNG) importers are expected to increase their procurement spending by at least $3.9 billion this year, despite a significant reduction in purchase volumes.
- The total global LNG procurement portfolio cost is projected to reach $256 billion, even though import volumes are expected to fall by 60.7 million tonnes. Disruptions to exports from Qatar and the United Arab Emirates have forced buyers to seek alternative cargos at higher prices.
- Europe is seeing the largest increase in costs, as the region relies on spot procurement and is especially exposed to rising market prices.
- Europe's LNG procurement expenditure is forecast to increase by at least $1.2 billion compared to pre-war estimates, an 18% rise, even though demand is projected to drop by 24 million tonnes.
- East Asia's costs are expected to rise by 9.7%, reflecting regional differences in gas purchase methods.
- Analysts noted that contract pricing terms are a key factor driving this divergence.
- About 82% of East Asia's long-term LNG contracts are linked to oil prices, while oil prices have risen less than spot prices. Prices under these contracts have increased by about 28%, compared to a 72% rise in contracts linked to gas hubs and spot benchmarks.
- The agency stated that Europe's average LNG price has surged by 47%, reflecting a greater exposure to spot markets and gas-linked contracts.
- Going forward, attention should be paid to the pace of export recovery from Qatar and the United Arab Emirates and the ongoing impact of structural differences in contract pricing between Europe and Asia on procurement costs.
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