Gas markets are facing price declines and LNG supply risks ahead of winter. The average price of spot LNG cargoes in Northeast Asia reached $26.40 per million BTU, down $2.26 from last week. Additionally, the average price in the UK NBP market was reported at $24.43 and in the Dutch TTF market at $24.68 per million BTU.
LNG Supply Risks and Their Impacts
Disruptions in transit through the Strait of Hormuz are considered one of the significant risks in the gas market. Saad Sherida Al-Kaabi, CEO of QatarEnergy, announced that part of the equipment needed to develop LNG production capacity in the country has not yet arrived in Qatar due to transit issues. Moreover, damage to the Ras Laffan facilities has taken about 17% of Qatar's LNG production capacity offline, and repairing two LNG production trains may take two to three years.
Read more: S&P Concerns About Guard's Financial Strength in Marine Insurance
Gas Storage Situation in Europe
Europe is facing low levels of gas storage ahead of winter. The storage levels in the European Union are reported to be around 67% to 68%, which is about 16 percentage points lower than the five-year average. In this context, LNG has become one of the main pillars of Europe's energy security, and Qatar's LNG exports have significantly decreased.
In 2025, Europe's LNG imports reached a record 125.2 million tons, and competition for flexible cargo supplies in the region has increased. Nevertheless, estimates indicate that storage in this region may only reach about 75% by November 1. This situation has raised significant concerns about gas supply in winter.
Alongside these short-term risks, the LNG market shows signs of renewed buyer interest in long-term contracts. The 20-year contract between Venture Global and China Gas for the annual supply of 2.5 million tons of LNG is one example of this trend.
Read more: Mostafa Rajabi Mashhadi Announced Load Management Plans in Khorasan · Exploring Cooperation Capacities in Oil and Gas Between Iran and Azerbaijan
