TOKYO — Asian countries are turning to barter arrangements and alternative suppliers to secure scarce energy supplies as disruptions from the conflict in the Middle East continue to limit flows through the Strait of Hormuz, officials and industry sources said.
Indonesia’s president visited Tokyo this week to discuss fuel swap deals, one of several barter efforts across the region. Indonesian officials said Jakarta could exchange liquefied natural gas (LNG) for liquefied petroleum gas (LPG) with Japan to address domestic cooking fuel needs. Japan’s government-backed oil and gas producer Inpex is also in discussions with India for a similar swap involving LPG for naphtha and crude oil, according to a Japanese government document.
The moves follow weeks of reduced oil and LNG shipments through the Strait of Hormuz, a key chokepoint for a significant portion of global energy trade destined for Asia. Several Asian nations have reported shortages of crude, LNG, naphtha and related products, prompting governments to seek non-traditional trading arrangements.
Indonesia’s President Prabowo Subianto told Japanese business leaders after signing pacts on long-term energy projects that maintaining rational economic relationships was vital. Djoko Siswanto, head of Indonesia’s oil and gas regulator SKK Migas, confirmed the potential LNG-for-LPG deal with Tokyo.
Other countries have pursued different options. South Korea and Sri Lanka have turned to Russian supplies for relief, while some nations have increased coal use as a short-term measure to offset LNG shortfalls, according to industry reports. China has restricted certain exports to prioritize domestic needs.
Details on the volume of energy secured through these barter deals remained unclear. The exact impact of the Hormuz disruptions on overall Asian import volumes has not been fully quantified by governments.
The International Energy Agency and regional analysts have noted Asia’s heavy reliance on Middle Eastern supplies. No immediate comments were available from major Middle Eastern exporters or Iranian officials on current shipping conditions.
As of Tuesday, Asian governments continued efforts to secure supplies through diplomacy and alternative sourcing. Further details on additional barter agreements or long-term contracts were not immediately available.
