Asian LNG benchmark jumps to $13.133/mmbtu amid US-Iran conflict, Platts data shows

By Marwa Rashad and Emily Chow

LONDON/SINGAPORE, March 2 - Benchmark Asian liquefied natural gas (LNG) prices jumped over 20% on Monday as a widening conflict following U.S. and Israeli strikes on Iran - and Tehran's retaliation - choked tanker traffic through the Strait of Hormuz.

Platts, part of S&P Global Energy, told Reuters that its Japan-Korea-Marker (JKM), widely used as an Asian LNG benchmark, rose $2.256 to $13.133 per million British thermal units (mmBtu).

"With roughly 20% of global LNG volumes transiting the Strait of Hormuz, a prolonged disruption would bolster further upside risk for the super-chilled fuel," said Aly Blakeway, manager of Atlantic LNG at S&P Global Energy.

"Middle Eastern suppliers may seek to backfill exposures with available U.S. free-on-board cargoes, tightening Atlantic basin availability," he added, as FOB basis allows buyers to resell cargoes.

Tensions in the Arabian Gulf have surged since the strikes on Iran over the weekend, prompting Tehran to declare the Strait of Hormuz closed to navigation, a key chokepoint for global oil and gas flows.

In response, crude, fuel and LNG shipments through the narrow waterway have been halted, with satellite data showing vessels piling up near major UAE ports, including Fujairah.

Benchmark Dutch and British wholesale gas prices also rose more than 25% on Monday morning.