Asia’s top LNG importers are reassessing Middle East supply routes after U.S. strikes on Iran raised security concerns in the Strait of Hormuz, according to S&P Global. While major disruptions are not expected in the short term, shipping congestion and insurance costs are rising. LNG prices have surged, and countries such as China and South Korea are exploring alternative sources as a precaution. They write:
Asia’s key buyers of Middle Eastern LNG are considering alternative supply sources following the US’ strikes on Iran’s nuclear sites over the weekend, which has shifted focus to shipping security in the vital the Strait of Hormuz delivery route, sources told Platts June 23.
The move by importers in India, China, South Korea and Japan comes as Tehran strengthens its rhetoric surrounding a potential blockage of the Strait of Hormuz, a vital chokepoint through which about 20% of the world’s oil and LNG transit daily. […]
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