Asian Buyers Shift to West Africa as Iran War Disrupts Gulf Exports

The ongoing Iran war has sent Asian LNG buyers scrambling for alternative suppliers in West Africa. Thailand's state-owned oil and gas company, PTT, is examining supplies from various regions, including West Africa, Oman, and North America.

The disruption to Gulf exports, caused by damage to Qatar's LNG infrastructure and the closure of the Strait of Hormuz, has removed about 36 million tonnes of Middle Eastern LNG supply from the market. However, Shell estimates that additional production elsewhere has reduced the net global supply loss to around five million tonnes, equivalent to between 1 per cent and 1.5 per cent of global supply.

As a result of this shift in procurement strategy, buyers are no longer looking only for additional suppliers but also want cargoes that can reach their markets without passing through vulnerable shipping routes. This could create new demand for LNG from existing West African producers while increasing pressure to complete projects in East Africa, such as those in Tanzania and Mozambique.