Middle East Crisis Accelerates U.S.-Thailand LNG Supply Talks
Germany’s Power Prices Soar 30% on Strong Demand, Low Wind Speeds Europeans are increasingly adopting heat… What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… The sudden halt of liquefied natural gas (LNG) flows from the Middle East has prompted Asian buyers to seek long-term solutions to secure supply from sources not needing the blocked Strait of Hormuz.
As Qatar’s LNG shipments are under force majeure until at least mid-August and full LNG export capacity may not be restored for another five years, LNG customers are looking to sign long-term supply deals with exporters outside of conflict areas.
Thailand, the top LNG importer in Southeast Asia, is now looking to boost its U.S.
gas supply to meet part of its demand in the long term.
Discussions about the long-term supply of U.S.
LNG to Thailand have accelerated since the Iran war and the closed Strait of Hormuz disrupted Qatar’s shipments, sources with knowledge of the talks toldReutersthis week.
No details about volumes or timelines were immediately available.
But typically, a long-term LNG supply deal covers at least 15 years of supply at set annual volumes.
Thailand has already committed to buy U.S.
and Thailandagreedon a reciprocal trade framework, under which the Asian nation pledged to buy U.S.
energy products, including LNG, crude oil, and ethane, with an estimated value of $5.4 billion per year.Related: America’s Answer to China’s Lithium Stranglehold Is Hiding in the Permian Basin The ongoing talks about U.S.
LNG supply to Thailand are centered on potential long-term deals between Venture Global and Thai energy company PTT, according to Reuters’ sources.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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