Japan–Korea LNG prices jump above $23/MMBtu; 3-1/2-year high
Japan–Korea LNG prices rise above $23/MMBtu to the highest level since January 2023 amid extreme temperatures boosting power demand and Middle East supply disruptions linked to Strait of Hormuz shipment uncertainty.
Japan-Korea liquefied natural gas prices climbed above $23/MMBtu, reaching their highest level since January 2023, as extreme temperatures lifted power demand while disruptions in the Middle East tightened fuel supplies.
Japan’s Meteorological Agency warned of unusually hot conditions across the country, increasing the need for gas-fired electricity generation.
The market is also facing significant uncertainty over shipments through the Strait of Hormuz, a key route for global LNG trade.
LNG flows through the waterway have been disrupted since an Iranian attack on a Qatari-owned tanker in July, raising concerns about the reliability of Middle Eastern supplies to Asian buyers.
The situation raised concerns over the availability of Middle Eastern supplies for Asian buyers, particularly as the US continues efforts to increase economic pressure on Tehran.
The disruption is especially significant for Japan and South Korea, which rely heavily on LNG imports to meet their energy needs.