Asian LNG prices outperform US prices amid uncertainty

Liquefied natural gas (LNG) prices in Asia are reaching record highs this year, surpassing levels seen in the USA, due to a combination of geopolitical risks and supply disruptions.
The Japan-Korea Marker (JKM), the main indicator for LNG deliveries in Northeast Asia, recorded a price of $14.255/MMBtu in August 2024, representing a significant premium of $12.18/MMBtu over the U.S. Henry Hub.
This situation highlights the challenges facing Asian buyers against a backdrop of strong demand and global supply uncertainties.
At the same time, planned maintenance work in Norway, Algeria and Libya, as well as the possible termination of the transit agreement between Russia and Ukraine, are complicating European supplies.
Europe is increasingly turning to LNG to offset these risks, fuelling growing competition with Asia for available cargoes.