Japan’s Osaka Gas is investing again in Australian gas with a 5% stake in the Browse project. The move comes with financial risk: approvals are unresolved, environmental opposition is strong and the market is in flux.
Bangladesh is already struggling financially. Its plan to pay a premium for a third floating storage and regasification unit from China without an open bidding process is drawing criticism.
Thailand is speeding up its push into solar and energy storage as gas prices remain highly volatile. A new $6 billion package aims to install rooftop solar across 1 million households.
Renewables are growing fast in India, taking a larger share of the electricity mix, but coal is also increasing. Meanwhile, gas is too expensive to play a significant role in the power sector.
In response to LNG disruptions, the Japanese government has moved to run dirty coal plants more often. But in the long run, nuclear restarts could suppress LNG demand.
The stalemate in the Strait of Hormuz is forcing a re-think of LNG-to-power projects in Southeast Asia, particularly in Vietnam and the Philippines, threatening to break the “gas bridge” narrative.
China remains tied to global fuel markets despite its diversification into renewable energy, which poses a significant risk in the context of continuing Hormuz disruption.
Hormuz disruption is driving up freight costs, insurance premiums and spot LNG prices, building pressure on import-dependent power systems in South Asia.
As the Iran conflict entered its third week and the Strait of Hormuz remained at least partially closed, the toll on LNG markets intensified.
Asian LNG demand is already feeling the effects of the war in Iran, with around 80% of Qatari production sold to buyers in Asia-Pacific.