PetroChina looks out for US LNG to de-risk supply
PetroChina’s trading division strives to enhance the flexibility of its LNG portfolio by adding US LNG, which comes without destination clauses. This offers room for re-sale, compared to deliveries under long-term countries from countries like Qatar.
US utilities to add nearly 19 GW of CCGT capacity by 2028
Developers plan to add 18.7 gigawatts of combined-cycle capacity to the US power grid by 2028, with 4.3 GW under construction. In contrast, an 98 MW unit at Plaquemines LNG terminal was the only gas power unit to come online last year.
Bangladesh floats LNG tenders
Bangladesh’s state-owned Rupantarita Prakritik Gas Company Ltd (RPGCL) has launched a series of tenders to buy two spot LNG cargoes for delivery on July 15-16 and July 17-18, a company official told local news. Each spot cargo is understood to carry about 3.36 mmBtu of LNG for delivery at Moheshkhali Island FSRU in the Bay of Bengal.
GTT chosen to build Purus’ new LNG carrier
Gaztransport & Technigaz (GTT) of France has been hired by HD Korea Shipbuilding & Offshore Engineering (HD KSOE) to design the tank for a new LNG carrier, built on behalf of Purus. Hyundai Samho Heavy Industries (HSHI) is assembling the vessel, due for delivery in Q4-2027.
Petronas and JERA sign MoU to provide LNG supply to Japan
Malaysian state energy company Petronas and Japan’s leading LNG importer and power producer JERA have signed a memorandum of understanding (MoU) to provide “reliable LNG supply for Japan.” The accord was signed during the Energy Asia 2025 conference.
TotalEnergy and Petronas partner on upstream and LNG
French energy major TotalEnergies has acquired stakes in multiple blocks offshore Malaysia and Indonesia from Petronas, targeting oil prospects with a view to export LNG from Malaysia from 2030.
Worley gives update on CP2 LNG site work
Australian engineering firm Worley has published an update on its reimbursable EPC contract, worth $9 billion, with Venture Global for phase 1 of the CP2 LNG project in Cameron Parish, Louisiana. First LNG is targeted in Q3-2027.
World energy investment to top $3 trillion, led by China
Global energy investment will reach a record $3.3 trillion this year – despite escalating geopolitical tensions and related economic uncertainty, the International Energy Agency (IEA) finds. China cements its position as the world’s single largest investor in energy.
LNG a key to phasing out coal in Asia, S&P Global finds
Burning LNG to balance renewable energy is ‘key’ to exit coal-fired power generation in Asia, a new study by S&P Global Commodity Insights finds. The average lifecycle carbon intensity for LNG sourced from Australia, the US and Qatar and used for electricity production in the study countries was 47% lower than for coal.
Risk premium on oil at $8 as Iran-Israel conflict escalates
Escalating tensions between Israel and Iran have pushed up crude oil prices to nearly $75 per barrel. The geopolitical risk premium has soared to around $8 per barrel, impacting oil-indexed natural gas contracts as well as term LNG deliveries.
The outlook hinges on Iran’s response. If the regime in Teheran keeps airstrikes focussed on Israeli military sites, as seen in past episodes, price increases may remain contained and temporary, Rystad analysts reckon. But if Iran escalates by disrupting crude oil and LNG shipments through the Strait of Hormuz, or attacks regional energy infrastructure, prices could go through the roof.
In an undisguised threat, US President Donald Trump warned the Iranian regime to stay clear on attacking American military bases in the Middle East, or face dire consequences.
Nautical chokepoint
The Strait of Hormuz – a key nautical route between the Mediterranean and the Red Sea – is the chokepoint in this scenario. Around 12 million barrels per day of crude oil pass through the strait, over 80% of it bound for Asia. Additionally, over 3.5 billion cubic feet (bfc) of natural gas, or 18% of world shipments, travel through the strait onboard of LNG tankers.
Though there is a pipeline to bypass the Strait of Hormuz, the capacity of that pipeline is limited. Saudi Arabia’s East-West oil pipeline and the UAE’s Habshan-Fujairah oil pipeline together can handle around half of the flow. As for natural gas, the Abqaiq-Yanbu pipeline runs parallel to the East-West Petroline in Saudi Arabia, bypassing the Strait of Hormuz. Its capacity is 290,000 barrels per day, carrying primarily gas liquids.
To date, Iran never succeeded in blocking the Strait of Hormuz which is jointly controlled with Oman. Past tactics included seizing or harassing tankers by jamming their GPS signals to draw them into Iranian waters.
“If Iran were to attempt a full-scale blockade of the Strait, it would likely face strong international pushback,” Rystad head of geopolitical analysis Jorge León warns. Retaliatory actions are to be expected particularly from countries of the Gulf Cooperation Counci, comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Even Iran’s key ally, China, would be hit hard by higher oil and LNG prices, he underlined, stressing such a move would isolate Iran politically and economically.
Beware shipping rates
Peter Sand, Xeneta chief analyst takes a similar view: “Any closure of the Strait of Hormuz would see services re-routed, with increased reliance on India West Coast ports for connecting the Far East to Indian sub-continent,” he noted. The inevitable disruption and port congestion, as well as the potential for higher oil prices, would cause a spike in ocean freight container and LNG shipping rates.
Average spot rates from Far East to North Europe are up 62% since early December 2023, just before escalation in the Red Sea, while average spot rates to US East Coast – another trade that would ordinarily transit the Suez Canal – are up a staggering 165%, analysts pointed out.
