JERA CEO warns LNG prices to climb further on Qatar supply halt

October 2, 2026 at 03:30 PM2 min

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JERA CEO Yukio Kani said on Friday that Qatari LNG supply is unlikely to return to the market soon, with QatarEnergy extending force majeure on deliveries through November. Asian spot LNG and European benchmark gas prices have surged to their highest levels since the 2022-2023 crisis. Kani expects spot LNG prices to rise further amid low EU gas storage and the upcoming EU ban on Russian LNG in January 2027.

Key Facts

QatarEnergy extended force majeure on LNG deliveries to Asia and Europe by another month through the end of November.
Asian spot LNG prices and Europe's benchmark natural gas prices are at their highest levels since the 2022-2023 crisis.
EU gas storage sites were 71% full as of October 1, compared to an 86% five-year average for this time of year.
Germany's gas storage sites are about 58% full, raising supply security concerns for a colder-than-average winter.
The EU ban on Russian LNG takes effect in January 2027.

Qatar Supply Halt

JERA does not expect Qatari LNG supply to return to the market soon, according to Chairman and Global CEO Yukio Kani. State-owned QatarEnergy extended force majeure on LNG deliveries to Asia and Europe by another month through the end of November. LNG cargo traffic through the Strait of Hormuz remains largely blocked amid the protracted U.S.-Iran stalemate over the chokepoint.

Price Outlook

The lack of supply from Qatar has pushed Asian spot LNG prices and Europe's benchmark natural gas prices to the highest levels since the 2022-2023 crisis. JERA's Kani told Bloomberg that the spot price of LNG will likely increase further amid historically low levels of gas in Europe's storage sites and the EU ban on Russia's LNG coming in January 2027. The Iran war has changed the near-term outlook and sent LNG prices in Asia and Europe soaring to highs last seen in the 2022 crisis.

European Storage Levels

As of October 1, gas storage sites in the EU were 71% full, according to data by Gas Infrastructure Europe, compared to 86% for this time of year in the past five years. Germany storage sites are only about 58% full, which has prompted concerns about supply security if the coming winter turns out much colder than previous winters. Europe is hard-pressed for supply ahead of winter, while price-sensitive buyers in Asia are scrambling for alternatives, burning more coal, and boosting renewable energy generation targets.