Middle East Urged to Diversify LNG Export Routes Amid Ongoing Conflict

Oman's Minister of Energy and Minerals, Salim Al-Aufi, is urging Middle Eastern countries to diversify their liquefied natural gas (LNG) export routes due to the ongoing conflict in the region. The Strait of Hormuz has become a chokepoint for LNG exports from the Persian Gulf, with the war between the US and Iran disrupting supply chains.

The Oman LNG hub has been running at maximum capacity this year, producing over 11 million tons of LNG annually to make up for lost supply from neighboring Qatar. Al-Aufi emphasized the need for alternative export routes, suggesting that new pipelines could be built through Yemen or other countries in the region.

However, such a move would come with risks, as new infrastructure projects in the region have become targets for drone and missile strikes. The president of Chevron's Australian operations, Balaji Krishnamurthy, predicts that LNG prices will remain elevated for at least another six months, citing the ongoing supply disruptions.