LNG buyers are seeking supplies from new regions as the US Israeli war against Iran disrupts shipments from the Gulf, prompting importers to look toward suppliers in West Africa, Indonesia and elsewhere.
Energy officials and industry executives at last week’s Gastech conference said Asian buyers were seeking both new suppliers and alternative shipping routes, while producers and trading companies were spreading investments across more gas projects and countries.
Thailand’s PTT is exploring supplies from Oman, North America and West Africa, while Bangladesh is considering LNG from Indonesia, Australia and China after previously relying heavily on Qatar.
The disruption has forced some Asian buyers to purchase replacement cargoes on the spot market at higher prices. However, Shell executive Tom Summers said new production capacity has reduced the net supply shortfall to about 5 million tonnes, or 1% to 1.5% of global LNG supply, despite the loss of about 36 million tonnes of Middle Eastern supply.
The shift could benefit emerging producers including Argentina, Timor Leste and Tanzania. Timor Leste plans two LNG projects with combined capacity of 6.5 million tonnes a year.
Japan’s Inpex also plans to diversify its supply portfolio, including development of Indonesia’s 9.5 million tonne Abadi gas project, with a final investment decision expected in mid 2027.
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