Asian LNG Spot Prices Top $30/mmBtu on Red Sea Tanker Attack, First Since 2022

Asian spot liquefied natural gas prices surpassed $30 per million British thermal units for the first time since December 2022, Bloomberg reported, after an LNG tanker was attacked in the Gulf of Aden off Yemen. The UK Maritime Trade Operations said a small boat's crew fired twice at the carrier in the Red Sea; the tanker's crew returned warning shots on Saturday. LNG had traded above $25/mmBtu for about a month as winter heating demand climbs, with Asia and Europe competing for cargoes regardless of price. European storage sits at 74% full versus a five-year seasonal average near 89%. A Qatar-origin LNG tanker was transiting the Red Sea toward Poland on Monday despite QatarEnergy's force majeure on exports issued after the U.S.-Israel-Iran war began; the company has sought to service long-term contracts with Poland's Orlen. High prices are curbing Asian demand, pushing poorer nations toward coal, while Europe—having shuttered coal plants—has little alternative but to pay.