Global LNG Prices Surge Amid Middle East Supply Crunch

Global liquefied natural gas prices have reached their highest levels since late 2022, driven by a supply crunch in the Persian Gulf and depleted European inventories. Conflict in the Middle East has trapped supplies from Qatar and the United Arab Emirates, forcing Europe and Asia to compete more aggressively for non-Middle Eastern cargoes.

Shell reports that European gas storage is currently below 70%, a significant decline from the 82% recorded in 2025 and the five-year average of over 80%. The company noted that storage levels in Europe are at a "historically low storage level heading into the end of fall."

Spot LNG prices in Northeast Asia recently rose to $28.40 per MMBtu. Wood Mackenzie warns that a colder-than-usual winter could push prices up to $40 per MMBtu, a spike that could lead to widespread demand destruction.