Iran War Disruptions Spur LNG Buyers to Seek Alternative Suppliers

LNG buyers are seeking alternative suppliers as the Iran war disrupts Gulf shipments and intensifies energy security concerns.

According to officials and industry executives, LNG importers are looking for new sources of fuel from countries such as West Africa, Indonesia, and other regions. This diversification push could boost projects outside the US and Qatar, which dominate planned capacity additions.

Thai state firm PTT is exploring supplies from Oman, North America, and West Africa, while Bangladesh's power minister Iqbal Hasan Mahmud said his country is looking at Indonesia, Australia, and China for replacement imports. The Iran war has disrupted 36 million metric tons of supply from the Middle East, but new capacity additions mean a net supply loss of only around 5 million tons.

Tom Summers, executive vice president for LNG marketing and trading at Shell, said that despite the loss, additional LNG vessels provide more shipping flexibility. High LNG prices and demand have boosted the prospects for new producers such as Argentina, East Timor, and Tanzania, with East Timor planning two greenfield LNG plants.