US LNG Becomes Key Hedge Against Strait of Hormuz Disruptions

LNG buyers are shifting their focus to the US as a hedge against future disruptions in the Strait of Hormuz. The Iran war and turmoil over the strait have forced them to seek alternatives to suppliers in the Middle East, particularly Qatar.

Companies from Thailand, Pakistan, and Bangladesh are in talks with US suppliers for long-term contracts. China Gas Holdings Ltd has already signed a rare sales agreement with Venture Global Inc, set to start in 2030. This move comes as disruption to Hormuz enters its seventh month and Qatar's massive export terminal remains largely offline after being damaged by missile strikes.

According to Yukio Kani, chairman of Jera Co, one of the world's biggest LNG buyers, 'buyers around the world really are more focused on diversifying their LNG procurement.' He emphasized that some nations rely too much on Qatar for over 50% or 60% of their supply.

Inpex Corp, a Japanese energy producer, is considering investing in an LNG export project in the US. Chief executive officer Takayuki Ueda stated that 'the flow of LNG through the strait will not return to the previous status quo.'