LNG

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.

China has suspended LNG imports from the United States for 40 days in a tit-for-tat trade war, forcing traders to reroute shipments. No US LNG cargo is currently on route to China, Kpler data shows, and China Resources Gas International’s just secured alternative supply from Australia through a deal with Woodside.

Global LNG markets have been pretty unphased by last week’s US election results: near-term demand fundamentals are net bearish as traders await the onset of more severe winter weather. Looking at Q1-2025, uncertainty abounds with regards to Egypt’s LNG demand due to insufficient domestic gas production and escalating tensions in the Middle East.

Amid rising tensions, PetroChina considers suspending its US LNG purchases for delivery this winter. Location swaps of cargoes might help sort matter, with Japan and South Korea expected to step up imports of American LNG in order to sell some cargoes onward to Chinese buyers.