LNG

Vitol’s head of LNG, Pablo Galante Escobar, has warned the halt in Middle Eastern supply could develop into a food crisis, unless transits through the Strait of Hormuz resume. Longer term, the Gulf market could lose 20 mtpa of LNG supply growth in 2027 and 2028, because of damage to Qatari capacity and delays to new regional projects.

Fitch Rating reckons utilities in Asia Pacific can only a absorb a “short-lived fuel-supply disruption” linked to the Iran conflict. KEPCO and KOGAS rely heavily on imported LNG, so sustained shortages persist will weigh heavy on utilities balance sheets, analysts warn.