LNG Buyers Diversify Amid Iran War Disruptions

Liquefied natural gas (LNG) buyers are seeking to diversify their supply sources amid the ongoing US-Israeli war against Iran, which has disrupted shipments from the Gulf region.

Asian governments and importers are looking for alternatives in countries such as West Africa, Indonesia, and North America, according to officials and industry executives who spoke at the Gastech conference last week.

Thai state firm PTT is diversifying its supply sources by looking to Oman, North America, and West Africa, while Bangladesh's power minister said his country is exploring imports from Indonesia, Australia, and China after being reliant on Qatar for most of its LNG before the war.

New capacity additions have helped mitigate the loss of 36-million metric tons of supply from the Middle East, with Tom Summers, executive vice president for LNG marketing and trading at Shell, noting that the net supply loss this year is around 5-million tons or 1%-1.5% of global supply.