US Emerges as New Hub for LNG Buyers Fleeing Hormuz Uncertainty

Liquefied natural gas buyers are seeking alternative suppliers in response to ongoing tensions over the Strait of Hormuz, which has disrupted global trade. Companies from Thailand, Pakistan, and Bangladesh have entered into talks with US LNG exporters for long-term contracts.

The talks come as Qatar's massive export terminal remains offline following missile strikes and the UAE's supply to key Asian customers has been severely reduced. High spot prices have lifted utility bills and triggered energy shortages across parts of Asia.

Jera Co., one of the world's largest LNG buyers, has spent a decade diversifying its sources of supply and now depends on the Middle East for just 5% of its gas imports. The company's chairman, Yukio Kani, recommends that other nations follow suit to reduce exposure to the volatile spot market.

The US is poised to roughly double LNG exports by the end of the decade, with ExxonMobil Holdings Corp. predicting that US LNG will account for about 30% of global supply by 2030.