TL;DR: Chevron says LNG prices will stay high for at least six months as Middle‑East supply disruptions persist, pushing Asian spot rates to $26/MMBtu.
The Details
- Balaji Krishnamurthy, MD of Chevron Australia, told Bloomberg the next six months will see little price relief.
- Australian LNG projects Gorgon (15.6 Mt) and Wheatstone (8.9 Mt) represent ~5 % of global supply and are trading at a premium in Asia.
- Spot Asian LNG for October delivery hit $26/MMBtu, the highest level since Dec 2022, after renewed tensions in the Strait of Hormuz.
- Limited rerouting of cargoes from Qatar and UAE cannot meet winter demand in Asia and Europe, keeping the market tight.
Watch For
- Any de‑escalation in Middle‑East tensions that could reopen the Strait of Hormuz.
- Seasonal demand spikes in Asia and Europe as winter heating ramps up.
- Updates from Chevron on production guidance or potential new LNG contracts.
Analyzed by FNXT Experts