Bangkok – At the recent Gastech conference, officials and industry executives warned that the war between the United States, Israel and Iran has sharply curtailed LNG shipments through the Strait of Hormuz, prompting Asian buyers to broaden their supply base.
Governments push for diversified routes and sources
Sue‑Ern Tan, head of the International Energy Agency’s regional cooperation centre in Singapore, said many governments are now looking not only at new suppliers but also at alternative shipping routes to protect energy security.
Regional buyers explore new partners
Thailand’s state‑owned PTT is evaluating options in Oman, North America and West Africa, and its trading arm has just signed a long‑term contract with Norway’s Equinor for LNG deliveries.
Bangladesh, which previously depended heavily on Qatar, is turning to Indonesia, Australia and China for future imports, according to power minister Iqbal Hasan Mahmud.
Early in the conflict, Asian state energy buyers were forced onto the spot market, paying premiums to secure replacement cargoes from PetroChina, India’s GAIL and other sources.
Supply impact appears limited
Tom Summers, executive vice president for LNG marketing and trading at Shell, noted that although the war has eliminated roughly 36 million metric tons of Middle‑East supply, new capacity additions mean the net loss this year is only about 5 million tons – roughly 1 % to 1.5 % of global supply.
He added that the addition of 70 to 80 new LNG vessels each year is improving shipping flexibility.
Emerging producers gain attention
Higher LNG prices and the desire for diversified supplies are boosting prospects for new producers such as Argentina, East Timor and Tanzania.
East Timor’s energy minister, Francisco da Costa Monteiro, announced plans for two greenfield LNG plants: a 5‑million‑ton facility for the Greater Sunrise gas fields and a 1.5‑million‑ton plant to process leftover gas from the Bayu‑Undan field.
Industry leaders stress portfolio resilience
Takayuki Ueda, chief executive of Japanese energy firm Inpex, said companies are now focused on “portfolio resilience, diversification of supply sources and security for the entire supply chain.” Inpex is advancing the Abadi gas field in Indonesia, with an investment decision expected by mid‑2027 for a 9.5‑million‑ton project, and is also looking toward the Americas, including the United States and possibly Brazil.
Paul Marsden, president of engineering firm Bechtel, highlighted new supply opportunities from East Africa, citing projects such as ExxonMobil and TotalEnergies’ Rovuma development, as well as potential projects in Saudi Arabia and the Americas.
What this means for Asian energy markets
The push for diversified LNG sources reflects a broader strategy to safeguard power generation and industrial demand against geopolitical shocks. By securing contracts with a wider array of producers and expanding shipping capacity, Asian nations aim to maintain stable energy prices and reduce vulnerability to future disruptions.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
