Oman’s Energy Minister Calls for LNG Export Routes Bypassing the Strait of Hormuz

Oman’s Minister of Energy and Minerals, Salim Al-Aufi, urged Middle East producers to develop liquefied natural gas (LNG) export pathways that avoid the Strait of Hormuz, speaking at the Gastech conference in Thailand. His remarks, reported by Bloomberg, come amid disruptions to Persian Gulf LNG shipments following the outbreak of war involving the United States, Israel, and Iran.

The Strait of Hormuz is a narrow maritime chokepoint between Oman and Iran through which a large share of the world’s seaborne energy exports passes. When tanker traffic through the waterway is constrained, exporters have few alternatives, since most Gulf LNG terminals sit on the strait’s western side. Al-Aufi suggested exporters consider overland or southern routings instead.

“Let’s identify alternative export options,” Al-Aufi said, according to Bloomberg. “Be it north or through Oman or through Yemen. Diversify your options to get the resources out of the” region, he added, noting that LNG flows from the Persian Gulf have fallen sharply since the conflict began.

For Oman itself, the minister’s comments point to the country’s geographic position as a potential asset. Oman’s own LNG facilities at Sur, on the Gulf of Oman, already load cargoes outside the strait, giving the sultanate export access that terminals inside the Persian Gulf lack. Any expanded role for Omani or Yemeni routes would depend on new infrastructure, commercial agreements, and security conditions — developments that remain speculative at this stage.

Service providers with Gulf operations could be affected by shifts in regional export logistics. Houston-based Natural Gas Services Group (NGS), which supplies compression equipment to natural gas producers, saw its shares rise 2.15% in trading today to $37.72, up from a previous close of $36.93, valuing the company at roughly $486.6 million. The move came on a day when energy markets digested the minister’s remarks and continued disruption to Gulf cargoes.

LNG — natural gas cooled to a liquid for shipment by tanker — has become a central commodity in global energy trade, and export-route reliability is a growing focus for buyers in Asia and Europe. Al-Aufi’s call reflects a broader discussion at Gastech about resilience in supply chains that run through contested waters.

What to watch

• Further statements from Gulf energy officials at Gastech regarding export infrastructure proposals.
• Data on LNG tanker movements through the Strait of Hormuz as the conflict situation evolves.
• Any announcements of new pipeline or terminal projects in Oman or Yemen.
• Upcoming earnings reports from natural gas services firms, including Natural Gas Services Group, for commentary on regional demand.

Source: original release