LNG, Natural Gas
September 03, 2026
JKM soars to highest since December 2022 as Middle East war shuts arbitrage window
Editor:
HIGHLIGHTS
Asian LNG benchmark hits 21-month high
Hormuz disruptions halt Qatari cargo flows
Europe outbids Asia for US supply volumes
Platts JKM, the benchmark price reflecting LNG delivered to Northeast Asia, rose Sept. 2 to its highest level since December 2022, driven by escalating hostilities in the Middle East that have shut the arbitrage window.
Platts, part of S&P Global Energy, assessed October JKM at $25.908/million British thermal units Sept. 2, the highest since it was assessed at $28.315/MMBtu on Dec. 30, 2022.
The US launched fresh strikes on Islamic Revolutionary Guard Corps targets in Iran following a weekend of military exchanges, which raised global energy prices.
QatarEnergy had extended its force majeure declaration on LNG deliveries to Edison SpA, the Italy-based utility said in a transparency filing Aug. 27.
There have been no transits of LNG carriers through the Strait of Hormuz since Aug. 17, S&P Global Commodities at Sea data showed Sept. 1. This brought the total transit in August to just three LNG carriers, compared with 18 in July.
The lack of supply from Qatar created competition between Asia and Europe for US cargoes. As Europe started building gas stocks to prepare for winter, the European market has been stronger, decreasing Asia's premium over Europe.
"Asian LNG prices are rising to compete with Europe," a second Singapore-based trader said.
The number of US cargoes heading for Asia has been declining due to strong European competition, traders added.
The Asian LNG market has been seeing interest from Taiwan, South Korea and Japan for alternative supplies.
Taiwan bought at least three cargoes for October to November delivery in the week of Aug. 24-28 while South Korea was looking for cargoes for fourth-quarter delivery, Asian LNG traders said. Japan's Kansai Electric bought Aug. 31 four cargoes for delivery over November 2026 to March 2027, Asia-based traders said.
Demand from South Asia has also been strong despite the high prices, Asian LNG traders said.
"India is likely to keep buying spot cargoes," a third Singapore-based trader said.
