Iran Conflict Sparks Global LNG Shortages as Buyers Seek Non-Middle East Supplies

A prolonged US-Israeli war with Iran could push buyers to non-Middle East suppliers, according to Ryosuke Tsugaru, Senior Managing Executive Officer at Japan's biggest power generator JERA.

The crisis is disrupting shipping and causing shortages in the global LNG market, which could surge spot prices and increase volatility.

JERA handles about 35 million tons of LNG annually, with around 27 million tons used domestically. The company has a 27-year deal with QatarEnergy for 3 mtpa from the North Field South project, but deliveries could be delayed if the war continues.

To address potential shortages, JERA is considering additional spot purchases and may buy more from an LNG Canada expansion project.