LNG buyers are accelerating discussions to secure more fuel from the U.S., driven by the ongoing Iran war and significant turmoil affecting the Strait of Hormuz. This strategic shift is a response to the 7-month disruption in the Strait, which previously accounted for approximately one-fifth of all LNG flow, and the substantial damage to Qatar's key export terminal from missile strikes. Companies from Thailand, Pakistan, and Bangladesh are reportedly in talks for long-term contracts with U.S. suppliers, with China Gas Holdings Ltd. already signing a rare sales agreement with U.S. exporter Venture Global Inc. for deliveries starting in 2030.

The global LNG market faces a prolonged disruption, as indicated by Mitsui OSK Lines Ltd., a major Japanese shipping firm, which anticipates that LNG shipments through the Strait of Hormuz will not resume in the near future. This pessimism is fueling a broader trend towards diversifying LNG sources. Yukio Kani, chairman of Jera Co., one of the world's largest LNG buyers, emphasized the need for diversification, noting that some buyers are over-reliant on Qatar. Jera has diversified its supply over the past decade, with only about 5% of its LNG now sourced from the Middle East.

U.S. suppliers are attractive due to their competitive pricing for long-term contracts, often linked to the Henry Hub benchmark, with deliveries to Asia priced around $8 per million British thermal units (MMBtu). This contrasts sharply with current spot market prices in Asia, which are approximately $30 per MMBtu. While some U.S. contract prices have increased due to supply chain issues and market tightness, the flexibility of U.S. supplies to be delivered to both Asia and Europe, or resold, adds to their appeal. New LNG supply from North America has already replaced over half of the Middle Eastern volumes lost this year, and the U.S. is projected to double its exports by the end of the decade, potentially accounting for about 30% of global supply by 2030. QatarEnergy itself is seeking multi-year U.S. LNG deals through 2031 to compensate for lost capacity from its damaged Ras Laffan facility.