Analysts see a longer term shift under way in which Africa emerges as a net gainer from the conflict in Iran. Africa’s LNG exporters were already adding considerable capacity, with an estimated 58.6bcm of LNG capacity that could play a role in preventing a wider shortfall in key consuming markets.
Bracewell’s Patricia Tiller told African Energy that buyers now consider security of supply as a key pricing factor.
“This is the first time that we have seen the Strait impacted for this length of time and buyers in general are no longer asking ‘where is the cheapest LNG?’ – which is the reason that Qatar has supplied successfully such a significant portion of [global] LNG – but ‘which LNG will actually arrive?’,” Tiller said.
