North Asia spot liquefied natural gas (LNG) prices jumped to the highest level this year on increased competition from Europe for the heating and power plant fuel.

The Japan-Korea marker, the benchmark for the region, rose to about US$15.3 per million British thermal units yesterday, the highest since early December 2023, according to traders.

This follows a similar gain in the European benchmark.

Unusually, cold and windless weather in Europe is draining gas inventories and boosting demand for seaborne LNG shipments, with some traders diverting supply away from Asia.

Some buyers in Asia, like those in India and China, are curbing spot LNG purchases because shipments are too costly and alternative fuels are more attractive.

Despite the rise in Asian LNG prices, it still makes more economic sense for US shipments to favour Europe, traders said.

Weekly LNG deliveries to Europe are expected to hit the highest level since February next week, according to ship-tracking data compiled by Kpler.

Meanwhile, China — the world’s top LNG importer — isn’t in dire need of additional supply because of brimming inventories in some parts of the country, traders said.

That means that the country likely won’t dip back into the spot market unless winter weather turns significantly colder, they added.