Asian LNG Prices Spike as Middle East Conflict Disrupts Supply

The volatility stems from QatarEnergy’s decision to extend a force majeure on LNG deliveries through November. With critical maritime passages blocked, South Asian utilities in Pakistan, Bangladesh, India, and Taiwan are scrambling to secure spot cargoes to compensate for missing term supplies. This rush for alternative fuel is intensifying competition just as seasonal demand begins to climb.

Energy infrastructure remains a focal point of the conflict. President Donald Trump confirmed a heavy strike against Iranian defensive and offensive assets along the Strait of Hormuz, signaling readiness for further action. Meanwhile, the high cost of replacement supply is creating friction; Pakistan recently rejected a BP offer priced above $27 per mmBtu, deeming it unaffordable. As European buyers also face rising gas costs ahead of the winter season, the prospect of normalized LNG flows from the Persian Gulf remains distant, threatening to price out smaller importers from the market entirely.