Chevron expects LNG prices to remain high in the coming months — OilPrice
In Thailand, Chevron Australia said that liquefied natural gas (LNG) prices may remain high over the coming months due to significant supply disruptions from the Middle East. Chevron Australia Managing Director Balaji Krishnamurthy told Bloomberg TV that he does not expect prices to decline for approximately the next six months.
Australian LNG in Asia
As OilPrice reports, Australian LNG is currently trading at a premium in Asia, partly due to Australia's geographical proximity to a key demand hub. Krishnamurthy made this assessment on the sidelines of the Gastech conference in Bangkok.
Chevron operates two major LNG production projects in Australia. Gorgon has a capacity of 15.6 million tonnes per year, while Wheatstone has a capacity of 8.9 million tonnes per year. Combined, these projects account for about 5% of global LNG supply.
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Spot prices in Asia
At the end of last week, the spot price of LNG for delivery to Northeast Asia in October rose to its highest level since 2022. The average price for October deliveries on Friday was $26 per million British thermal units, compared with $25.70 recorded at the end of the previous week.
According to the publication, the resumption of LNG flows through the Strait of Hormuz is being delayed. Some cargoes from Qatar and the United Arab Emirates in the Persian Gulf have been transferred to other vessels outside the strait in recent weeks. At the same time, these supply volumes are insufficient to cover demand ahead of the winter heating season in Asia and Europe.
