Hormuz Disruptions Fuel LNG Supply Diversification

Liquefied natural gas (LNG) supply diversification has accelerated in response to disruptions in shipping traffic through the Strait of Hormuz, which accounted for nearly 20% of global LNG supply before its trade was affected. According to the International Energy Agency (IEA), Qatari and Emirati loadings fell by 35 billion cubic meters between March and June 2026 compared with the same period in 2025.

The decline has been partly offset by rising LNG production outside the Gulf, which rose by about 27 billion cubic meters, an increase of nearly 18% year-on-year. Shell's LNG Outlook 2026 report notes that a relatively stable global supply does not mean every buyer recovers its contracted cargoes.

INPEX is advancing its Abadi project in Indonesia to strengthen its Asian LNG portfolio, while Woodside is moving forward with the Greater Sunrise project in Timor-Leste. The Ministry of Petroleum and Mineral Resources has signed an agreement with Woodside covering the technical and commercial maturation of a plant concept fed by the field.