Hormuz Tanker Halt Pushes Asian LNG Spot to $16.07/MMBtu as Pakistan Scrambles for Emergency Cargoes and Henry Hub Drops 6.6 Percent

The Japan Korea Marker for Asian LNG spot cargoes traded at $16.07 per MMBtu on Wednesday, essentially unchanged on the session. Henry Hub natural gas settled at $3.00 per MMBtu on the CME, falling $0.21 or 6.57 percent. The opposing moves pushed the gross spread between the two benchmarks to $13.07 per MMBtu. Hormuz shipping disruptions are keeping Middle East LNG supply constrained, while abundant US production continues to suppress Henry Hub prices simultaneously.

Pakistan Diverts to Spot Market After Qatari Cargo Cancels

Pakistan rushed emergency spot LNG purchases after a Qatari cargo was canceled due to Hormuz disruptions, OilPrice.com reported on Wednesday. Qatar holds the position of the world's largest LNG exporter, but its tankers depend on open Strait of Hormuz passage. Renewed US-Iran hostilities and Rystad Energy's report of tanker traffic "essentially stopping" have severed that transit corridor. Pakistani state gas utilities now face spot market prices above their contracted delivery costs.

Venture Global Reports 69 Percent Surge in Liquefaction Revenue

OilPrice.com reported Wednesday that Venture Global LNG's liquefaction fees rose 69 percent to $6.45 per MMBtu amid regional supply turmoil. Venture Global operates Calcasieu Pass LNG in Cameron Parish, Louisiana, and is completing the Plaquemines LNG facility in Plaquemines Parish. Both facilities liquefy Henry Hub-priced gas and sell into a global market where Hormuz disruptions are pricing out competing Middle East supply. Higher realized fees reflect the premium buyers are paying to access Gulf Coast LNG over disrupted Qatari cargoes.

JKM-Henry Hub Spread Hits $13.07 Per MMBtu, Signaling Strong US LNG Margins

Wednesday's JKM price of $16.07 per MMBtu versus Henry Hub at $3.00 per MMBtu produces a gross spread of $13.07 per MMBtu. From that spread, US LNG exporters subtract liquefaction costs and shipping charges before booking profit. OilPrice.com reported that Venture Global collected liquefaction-related fees of $6.45 per MMBtu, which would leave a residual spread of $6.62 per MMBtu before shipping costs of approximately $2.00 to $2.50 per MMBtu for US Gulf Coast to Northeast Asia routes. Net margins in that range, approximately $4.12 to $4.62 per MMBtu, remain after combining those inputs against JKM spot.

EIA STEO Projects Record US LNG Exports Through 2027

The EIA's July Short-Term Energy Outlook, released July 7, projects US natural gas production will continue setting records through 2026 and 2027. Increased output underpins growing LNG export capacity from Gulf Coast terminals, reinforcing the ability of US facilities to fill demand displaced by Hormuz disruptions. The EIA also noted that record domestic production is the primary reason Henry Hub prices remain structurally below international benchmarks like JKM. As Oil Authority reported July 6, Wood Mackenzie projects Henry Hub will reach $5 per MMBtu by 2035 as AI data center power demand and LNG export growth tighten the domestic gas balance.