Oman Energy Minister Says Middle East Needs to Diversify LNG Export Routes
Soaring Oil Prices Put Fed on Track for September Rate Hike What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… The Middle East needs alternative export routes for liquefied natural gas that bypass the Strait of Hormuz, Oman’s Minister of Energy and Minerals said at Gastech today.
LNG exports from the Persian Gulf have collapsed since the start of the war between the United States and Israel and Iran.
“Let’s identify alternative export options,” Salim Al-Aufi said at the Gastech conference in Thailand, asquotedby Bloomberg.
“Be it north or through Oman or through Yemen.
Diversify your options to get the resources out of the area.” Such alternative routes would necessitate the construction of new pipelines, which will take time and will immediately turn them into new targets for drone and missile strikes, in light of the latest Yemeni strikes on Saudi Arabia’s East-West pipeline.
Oman itself produces over 11 million tons of liquefied natural gas annually.
This year, the Oman LNG hub has beenrunningat over maximum capacity to make up for lost supply from neighbor Qatar, which was the biggest producer in the region.
According to a mid-July report from MEES, the Gulf state was producing liquefied gas at a rate exceeding the nameplate capacity of its three trains, which is 11.4 million tons per year.
Meanwhile, the president of Chevron’s Australian operations predicted that liquefied natural gas prices will remain higher for longer.
“I have a hard time seeing the prices come down,” Balaji KrishnamurthytoldBloomberg today, expecting prices to remain elevated for at least another six months.
An earlierreportfrom Reuters cited unnamed sources as saying QatarEnergy was seeking LNG deals with U.S.
producers to make up for its lost domestic supply due to damage from Iranian strikes.
| 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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