Analysts say the turmoil underscores Asia’s need to shift to renewable energy, as nations scramble for alternatives amid the disruption
Asia is bracing itself for another energy shock after a disruption to Qatar’s liquefied natural gas (LNG) output sent regional gas prices to their highest level in about three years, exposing what observers say is a dangerous reliance on Middle Eastern fuel supplies.
The increase follows Iran’s drone strikes on Qatar in retaliation for Israeli and US attacks in a widening conflict, alongside a blockade of shipping through the Strait of Hormuz – a key artery for global oil and gas trade.
Spot LNG prices in Asia were hovering around US$23.80 per million British thermal units on Friday, Bloomberg reported.
Analysts say the turmoil highlights how Asia’s heavy dependence on imported fossil fuels leaves the region vulnerable to geopolitical shocks and underscores the need to accelerate the shift to renewable energy.
Qatar – one of the world’s largest LNG exporters – halted production on Monday at its Ras Laffan plant.
The halt has sent buyers across Asia searching for replacement cargoes, with some industries already cutting consumption as fuel costs surge.
Source: News - South China Morning Post
