Congestion at the Panama Canal has led to a surge in liquefied natural gas (LNG) prices in Asia, reaching the steepest premium over European prices in two years. Long wait times at the canal, caused by a severe drought affecting crucial reservoirs, have increased shipping costs for various commodities, including LNG. Delays have forced U.S. LNG cargoes to take longer alternative routes, such as around the Cape of Good Hope or through the Mediterranean and the Suez Canal, adding approximately nine days to the journey. The Japan Korea Market (JKM) spread over the Title Transfer Facility (TTF) reached its widest since December 2021, driven by these logistical challenges and making the marginal call for U.S. spot LNG to Asia more expensive.

SOURCE:GOOGLE