Oman Calls for New LNG Export Routes Around Strait of Hormuz as Gulf War Cuts 36 Million Tonnes of Supply

Oman's Minister of Energy and Minerals Salim Al-Aufi urged the global gas industry to develop alternative export routes for liquefied natural gas that bypass the Strait of Hormuz, speaking Monday at the Gastech conference in Bangkok. Months of conflict in the Persian Gulf, stemming from the war between the United States, Israel, and Iran, have severely disrupted LNG shipments through the strait. Al-Aufi called on producers and traders to "diversify your options," citing corridors running north, through Oman, or through Yemen as potential alternatives.

The scale of the disruption was underscored by a Shell executive who said the world has lost approximately 36 million tonnes of LNG from the Middle East year to date, a figure that signals the depth of the supply shock hitting global gas markets. Because natural gas cannot be moved by pipeline in the same way crude oil can, LNG producers in the Persian Gulf have no ready bypass route to Asia if Hormuz remains blocked, making the search for alternative infrastructure especially urgent.

The Gastech gathering in Bangkok also drew attention to where new LNG investment is flowing in response. Chevron is eyeing Argentina and the Mediterranean for global LNG growth and has struck a deal with India, while Thailand's Gulf Development, backed by billionaire Sarath Ratanavadi, is reviving plans for major gas-fired power projects in Vietnam as regional buyers look to lock in supply from outside the Persian Gulf.