Asian LNG spot prices jump after EU gas outages

LONDON: Asian liquefied natural gas (LNG) spot prices jumped this week in reaction to volatile price spikes on European gas markets and ongoing demand from the region´s major consumers.

Spot prices for January delivery hit $10.50 per mmBtu, 40 cents above last week, with February prices seeing similar levels. In a tumultuous week, European gas prices gyrated wildly following a flurry of major pipeline and production outages coinciding with high demand and freezing weather.

The rally began after the Forties oil and gas pipeline system shut for emergency repairs and gained strength as a fire broke out at Austria´s Baumgarten gas hub, choking Russian gas deliveries to Italy. The Forties outage briefly lifted Brent crude oil prices to a three-year high of $65 a barrel.