LNG Prices Expected to Surge 40% Amid West Asia Conflict

The spot prices of liquefied natural gas (LNG) in Asia are likely to climb to $14 per million British thermal units (mmbtu) from around $10 per mmbtu, an increase of 40 per cent, on account of the conflict in West Asia, said Norway-based Rystad Energy in a report on Tuesday.Shipping traffic through the Strait of Hormuz is likely to remain minimal through early April, with LNG production in Qatar and the UAE gradually returning to full capacity only by the second half of May, the research firm said.“The current price environment is likely to persist as long as the Strait of Hormuz remains closed, with additional upside if oil prices rise further,” it added. The Strait of Hormuz is a critical maritime chokepoint between Iran and Oman through which significant volumes of energy cargoes transit.