Daily Energy Report
Gulf/Asia LNG/oil interdependence, Hormuz nervousness, OPEC+ calm, Chevron Singapore refinery, UK’s pointless sanctions, Japan LNG deals, USGS resource estimates, North Sea drilling, and more.
June 19, 2025
Interview
https://x.com/anasalhajji/status/1935431353824329760
Or:
Chart of the Day
EOA: Is the Gulf Dependent on Asia for its LNG or is Asia Dependent on the Gulf?
Bloomberg: A War in the Middle East Is Pushing Asian Gas Buyers to Consider Plan B
Summary
Asia’s reliance on Middle Eastern LNG is under review as the Iran-Israel conflict raises risks to shipments through the Strait of Hormuz. While flows remain steady, buyers are quietly seeking alternative sources and boosting energy security. Though short-term demand is covered, the conflict is accelerating a long-term shift away from the Middle East toward more stable suppliers like the US, with Japan already reducing reliance on Qatar.
Figure (1) shows trends in shares of the LNG exports of the Gulf countries (Qatar & UAE) relative to global LNG exports. About 21.3% of the global LNG LNG exports exits through Hormuz Strait where 87% of it goes to Asia.
The US is the largest LNG producer and exporter in the world with 23.8% market share in May. We mentioned the word “exits” because Kuwait and Dubai import LNG that “enters” the Hormuz Strait and soon Iraq will join them.