LNG

China wants to buy more American oil and may lift its 25% tariff on US LNG imports as “energy is the one thing they really need,” President Donald Trump told Fox News. Beijing could unilaterally approve the resumption of US LNG imports, but the country has proven resilient to Qatari supply disruptions in the third month of the Middle East conflict.

QatarEnergies is working towards restarting some LNG trains at Ras Laffan, as shipping disruptions are anticipated to ease by the end of April. If the Strait of Hormuz remains closed until July or beyond, however, analysts reckon prices at the Dutch TTF gas trading hub would need to rise to well above 2022-levels for Europe be able to refill storages.

Thailand’s Energy Regulatory Commission (ERC) is stepping up efforts to mitigate risks posed by disrupted LNG trade flows through the Strait of Hormuz. Nearly two-thirds of Thailand’s electricity comes from gas-fired power stations which largely depend on imported LNG, making them vulnerable to supply shortages and geopolitical risk.