LNG

The UK government is actively considering chartering or funding a floating storage and regasification unit (FSRU) to shore up gas storage and import capacity amid warnings the country could face supply shortfalls by the 2030s. The option emerged in the government’s response to a consultation by the Department for Energy Security and Net Zero (DESNZ) on gas supply security, which found the market alone is unlikely to deliver sufficient resilience against high-impact stress scenarios.

First commercial shale gas from Australia’s Beetaloo Basin is on track to flow in September from Tamboran Resources’ Shenandoah South drilling site, unlocking one of the world’s largest undeveloped gas resources and potentially underpin new LNG export capacity.

QatarEnergies has notified Edison that it is unable to deliver three LNG cargoes, extending force majeure until the end of September, the Italian utility stated. A total of 24 cargoes, representing a combined 3 bcm of natural gas, are now subject to force majeure over the April-September delivery window, with Edison saying it has already replaced most of the lost volumes.

Soaring LNG trade flows from the US and Canada have offset around 70% of the lost supply via the Strait of Hormuz, though further military escalations in the region and delays in restoring Qatari exports keeps could prolong market tightness into 2027, the International Energy Agency (IEA) warns.

Asian LNG demand set to fall for a second consecutive year as Qatari supply disruption pushes spot prices to levels that force buyers to cut volumes and switch fuels. Wood Mackenzie forecasts Asia Pacific demand at 257 million tons (Mt) in 2026, down from 268 Mt in the previous year and a peak of 278 Mt in 2024.

UTM Offshore is forging ahead with Nigeria’s first floating LNG project after securing a 15-year gas supply agreement that removes one of the biggest obstacles to reaching final investment decision (FID), now expected in Q4-2026.

South Korea’s steady inflow of Qatari LNG of roughly 0.6-0.9 MMt per month for the past two years was disrupted by the Ras Laffan air strikes in March and the subsequent force majeure. The last Qatari cargo to date discharged at Incheon on 9 March, with replacement volumes scattered across multiple sources.

Suspension of nearly 10.2 mtpa of Qatari LNG supply to Asia is forcing utility buyers to switch to coal, with an additional 150 million tonnes (Mt) of consumption projected through 2030, roughly half of which in 2026 alone. A supply gap, not green policies, is driving demand, with RystadEnergy anticipating an LNG shortfall of 35 million tons this year.

As Asian netbacks for delivered LNG cargoes outbid European prices, buyers are struggling to attract sufficient volumes to offset a looming storage shortfall. An additional 40 cargoes per month would be needed over the next five months, according to ICIS calculations, though economists doubt this is achievable.

Venture Global and Thailand’s state-controlled energy giant PTT PCL are in advanced talks for binding LNG offtake, supposedly from the Plaquemines or CP2 export facilities in Louisiana. If finalized, the deal would help diversify Thailand’s LNG supply away from Middle Eastern sources.