Asian Spot LNG Hits $25.91/mmBtu on Qatar Force Majeure and Hormuz Strikes

QatarEnergy’s force majeure, first declared in mid-October and extended on 20 October, halted term cargoes bound for South Asia. Pakistan rejected a BP offer above $27/mmBtu while South Korea, India, Taiwan and Bangladesh issued fresh spot tenders for October-November delivery. Bloomberg data showed a 5 percent weekly gain driven by replacement purchases for Qatari volumes trapped inside the Gulf.

US Central Command confirmed strikes on Iranian positions along the Strait on 21 October, citing new equipment intended to threaten transit. The action followed earlier exchanges that reduced daily LNG transits from 20 million tonnes per month to under 12 million. European TTF prices rose in parallel, tightening the arbitrage window for Atlantic cargoes headed east.

Qatar gains from higher realized prices on remaining spot sales yet faces contract penalties and buyer diversification toward US and Australian supply. Importers absorb immediate cost spikes but accelerate long-term charter and storage investments that reduce reliance on any single chokepoint. Both sides register measurable revenue and security trade-offs rather than outright victory.

Absent a verified de-escalation or cleared transit corridor by early November, seasonal demand will likely push select Asian tenders above $28/mmBtu and force marginal buyers out of the market.