The price of spot liquefied natural gas (LNG) in Asia has moved higher amid the blockage of the Suez Canal, but it’s doubtful it needs to as the delays to shipping to the region will likely only have a marginal impact on supply.
The spot LNG price rose to $6.80 per million British thermal units (mmBtu) in the week ended March 26, up from $6.50 the prior week and the highest in a month.
LNG futures in New York did even better, ending at$6.93 per mmBtu on March 26, up 7.9% from the last price a week earlier.
In some ways it’s not surprising that spot LNG prices have shifted higher, as the unexpected blockage of a major shipping transit point introduces a level of uncertainty and volatility to the market.
Efforts to free the Ever Given container ship, stuck in the canal since last Tuesday, were still successful as of late Sunday Egyptian time.