LNG

Strike threats at Inpex-operated Ichthys LNG terminal from May 27 leave Japan most vulnerable, given its heavy reliance on contracted Australian supply. Around 70% of the LNG from the 9.3 mtpa Ichthys facility in Darwin is sold to Japanese offtakers, notably JERA, Kansai Electric, Kyushu Electric, Osaka Gas, Toho Gas, and Tokyo Gas.

South Korea’s ruling Democratic Party today announced the abolition of spring caps limiting coal-fired plants to 80% capacity, alongside boosting nuclear utilization to over 80% from late-60s levels. “We aim to lift coal power caps to ease reliance on LNG for electricity generation,” an official from the Ministry of Trade, Industry and Resources said, pointing at government strategy to stabilize baseload power.

The Chinese government is urging Iran to ensure safe passage for Qatari LNG carriers and crude oil tankers through the Strait of Hormuz, as Beijing relies heavily on these imports. Shipments have dropped from an average 20 to 24 LNG tankers per day at the beginning of 2026 down to zero.

The European Union could source 75-80% of its LNG imports from the US, up from currently 57%, if the bloc honours all its offtake agreements and its gas demand reduction efforts falter. Analysts warn of an overreliance on US LNG, deemed “the most expensive LNG for EU buyers.”

Imports of Russian LNG into the EU have soared – regardless of sanctions – with most shipments headed to France, Spain and Belgium and a third of cargoes imported as spot trades. Analysts urge EU members states to prioritise on phasing out these flows.

Reliance Industries, the leading Indian energy company supplying natural gas to supplement LNG imports, reported an almost 57 percent jump in fiscal third-quarter revenues while its domestic natural gas price was at just over $6 per million British thermal units.

BP of the UK and one of India’s largest conglomerates, Reliance Industries, have taken a final investment decision to develop the second phase of a $6-billion deepwater natural gas project to open new Indian production when the nation is also increasing its LNG imports and expanding its regasification and pipeline infrastructure.