Tight shipping capacity in the Strait of Hormuz may push up Asian LNG spot prices

(1) Megan Jenkins, Senior Principal Analyst for Asia LNG at S&P Global Commodity Insights, stated that if shipping capacity through the Strait of Hormuz remains tight after the New Year, Asia LNG spot prices could average $30 per million British thermal units (MMBtu) in January and February. (2) Jenkins said at the Singapore International Energy Week conference on Tuesday that under this scenario, as demand enters the low season from March to May, prices could fall back to around $20 per MMBtu. (3) If Qatari supply resumes in January, off-season prices next year are expected to drop to about $10 per MMBtu; S&P Global forecasts the spot price average for October-December to be around $26 per MMBtu.