Japan relies on the Middle East for about 11% of its LNG imports and roughly 95% of its crude oil, with around 6% of LNG shipments routed through the Strait of Hormuz, which is effectively closed amid the ongoing US-Israeli conflict on Iran.

More than one-fifth of global LNG supply is offline due to the conflict affecting Middle East energy facilities, with QatarEnergy LNG facilities shut and deliveries potentially delayed for months, according to Qatari Energy Minister Saad al-Kaabi.

The disruption to LNG and crude oil supplies is tied to the broader conflict and the closure of the Strait of Hormuz, with al-Kaabi warning that it could take months to return to normal deliveries.

Japan is looking to diversify its supply by urging Australia to increase LNG production, as a bilateral push during the Indo-Pacific Energy Security Ministerial aims to stabilize Japan’s energy inputs.

Australia accounts for about 40% of Japan’s LNG imports, underscoring its pivotal role in Japan’s energy mix.

Australia’s LNG outlook foresees higher output as Scarborough and Barossa fields ramp up, expanding Western Australia’s gas production.