LNG market faces extended Hormuz outage, Japanese shipper says
The disruption has pushed Asian spot LNG prices to their highest level since 2022, with the potential for further gains as winter approaches.
Japanese shipping giant Mitsui OSK Lines expects LNG shipments through the Strait of Hormuz to remain halted for an extended period, indicating a prolonged crisis that could maintain high prices and reduce demand throughout Asia. Chairman Takeshi Hashimoto, speaking at the Gastech conference in Bangkok, expressed deep pessimism about the immediate future, stating that a comprehensive peace agreement among conflicting parties appears "very, very difficult."
The company has ceased sending LNG tankers through Hormuz, a strategic waterway that once facilitated about one-fifth of global LNG supply before the conflict erupted. This disruption has driven Asian spot LNG prices to their highest point since 2022, with the likelihood of further increases as winter approaches and heating demand rises.
While some buyers in Asia are considering alternative energy sources from the U.S., Canada, Australia, and parts of Africa, Mitsui OSK Lines emphasized that these options are unlikely to be sufficient to meet the region's demand.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
