Asian LNG Buyers Diversify Supplies Amid Strait of Hormuz Tensions

The ongoing U.S.-Iran conflict has disrupted Gulf supplies and raised concerns about the security of maritime traffic through the Strait of Hormuz, a crucial chokepoint for liquefied natural gas (LNG) trade. As a result, Asian LNG buyers are diversifying their supplier and shipping options to protect deliveries and secure replacement cargoes.

About one-fifth of global LNG trade passed through the Gulf before the conflict, but now buyers are looking beyond the region to ensure a stable supply. Bangladesh, for example, is seeking alternative sources in Indonesia, Australia, and China, while PetroChina and India's GAIL secured replacement cargoes outside the Gulf earlier this year.

PetroChina and India's GAIL secured replacement cargoes outside the Gulf earlier this year. Thailand's state-controlled energy group PTT is examining supplies from Oman, North America, and West Africa, and its trading arm has signed a long-term agreement with Norway's Equinor.