Oman Energy Minister Calls for Hormuz Bypass Routes as Persian Gulf LNG Flows Stay Suppressed
Oman's energy minister called for new LNG export routes at Gastech on Monday as Persian Gulf volumes remain suppressed by wartime disruption despite a partial Strait reopening.
Oman's Minister of Energy and Minerals told Gastech delegates on Monday (2026-09-14) that the Middle East needs alternative export routes for liquefied natural gas that bypass the Strait of Hormuz. LNG exports from the Persian Gulf have collapsed since the start of the war, the minister said.7
The statement reflects how deeply exposed Gulf producers remain to a single chokepoint. Around a fifth of global LNG flows normally transit the Strait, and the vast majority of Qatar's and the UAE's exports depend on it, according to the IEA as reported by CNBC. Pipelines to alternative oil terminals exist, but there is no comparable gas bypass infrastructure that routes significant volumes around Hormuz.4,6
Qatar's position has deteriorated most sharply among Gulf LNG producers. Two trains at Ras Laffan were damaged during the conflict. North Field East, designed to add 33 million tonnes per annum of capacity, and North Field South, planned at 16 mtpa, have seen restart timelines slip by 12 to 18 months, according to CSIS analysis published in August (2026-08-05). QatarEnergy's merchant LNG share from Golden Pass, at 12.6 mtpa, is roughly equivalent to the volume lost from the two damaged Ras Laffan trains, both QatarEnergy-ExxonMobil joint ventures.3
Oman's infrastructure sits outside this exposure. Its liquefaction complex routes exports directly through the Arabian Sea without Hormuz transit. The country shipped 11.9 million tonnes in 2025, exceeding its installed capacity of 10.4 mtpa, according to the International Gas Union's 2026 World LNG Report. A report from MEES published in mid-July (2026-07) confirmed production was still running above the nameplate capacity of all three trains at the time of publication.2,7
Oman accounted for 2.7 per cent of global LNG trade in 2025, when total flows rose 6.3 per cent to a record 436.98 million tonnes, per IGU data. The US exported 110.74 million tonnes that year, Qatar 81.51 million tonnes, and Australia 80.32 million tonnes. The gap is significant. Oman's three trains, two commissioned in 2000, are approaching 25 years of service; running above nameplate through optimisation is achievable, but sustained over-performance on ageing equipment accumulates maintenance risk.2
Australia has gained visible ground as a supply anchor during the disruption. With exports of 80.32 million tonnes in 2025 it sits third globally, and The Australian reported on Wednesday (2026-08-19) that its role as a reliable supplier has provided a stabilising force for regional markets during the squeeze caused by the Middle East conflict.2,4
The UAE is pressing ahead with its own oil bypass infrastructure. Crown Prince Mohammed bin Zayed announced in May (2026-05-15) that the country would fast-track a pipeline designed to double crude export capacity through Fujairah on the Gulf of Oman coast. No equivalent gas bypass pipeline has been announced from Qatar or the UAE.5
The Strait of Hormuz partially reopened earlier in 2026. By late June (2026-06-25), tankers had resumed moving and crude prices had retreated from wartime peaks, Oil & Gas 360 reported. ICE Brent crude front-month was at $108.02 per barrel as of 08:47 UTC on Monday (2026-09-14). Dubai crude stood at $116.42 per barrel at the same time, an inversion of the normal pricing relationship between the two grades that reflects delivery risk buyers are still assigning to Gulf-origin cargoes. JKM front-month was at $24.88 per MMBtu at 08:47 UTC on Monday (2026-09-14), with Asian spot prices staying elevated despite the partial resumption of Strait transit.1
CSIS noted in August (2026-08-05) that Qatar retains its position as the world's lowest-cost LNG producer and could pursue buyers aggressively through discounted long-term contracts if North Field construction resumes at full speed. But buyers willing to commit long-term need confidence that Hormuz transit will stay reliably open. The pace of the North Field East restart, and whether Oman can sustain above-nameplate output on trains now entering their mid-twenties, are the two supply-side variables that matter most for Asian spot prices through 2027.3,2