LNG Buyers Diversify Amid Gulf Disruptions
The ongoing conflict in the Middle East has led to a significant disruption in liquefied natural gas (LNG) shipments, forcing buyers to diversify their suppliers and explore alternative routes.
According to Sue-Ern Tan, head of the International Energy Agency's regional cooperation centre in Singapore, many governments are looking at diversification of both suppliers and supply routes.
Thai state firm PTT is looking to Oman, North America, and West Africa for supplies, while its trading arm signs a long-term supply deal with Norway's Equinor. Bangladesh, which had relied on Qatar for most of its LNG imports before the war, is now considering Indonesia, Australia, and China.
The net LNG supply loss in 2024 is limited to about 5 million tons, or 1% to 1.5% of global supply, due to new capacity additions and 70-80 vessels entering the market annually. New producers such as Argentina, East Timor, and Tanzania are gaining market traction as projects like East Timor's 5-million-ton and 1.5-million-ton plants progress.