LNG Supply Crunch Exposes Southeast Asia's Energy Security Vulnerabilities
Energy ministers and executives gathered in Bangkok for Gastech 2026 to discuss the prolonged price increase for liquefied natural gas (LNG) triggered by the Iran war. The meeting highlighted Southeast Asia's energy security concerns, with the region's growth ambitions and climate goals on the line as LNG costs soar.
The US and Israel's attack on Iran in late February resulted in the virtual closure of the Strait of Hormuz, curtailing a fifth of the world's gas supplies. Tengku Mohammad Taufik, CEO of Malaysian state energy giant Petronas, described this as a 'debacle' that has disrupted LNG supplies.
Singapore relies heavily on natural gas for its power generation, with most imports coming from Malaysia and Indonesia, Southeast Asia's largest producing nations. Policymakers emphasized the need for pragmatism over net-zero targets and closer cooperation to ensure affordable LNG supplies.