The Significance of the Strait of Hormuz to the Asian Power System

Asia's power system relies on Middle Eastern liquefied natural gas (LNG) for about 20%. If Qatar Energy announces force majeure leading to an LNG supply disruption, it will pose significant risks to data centers and power grids in Asia. Morgan Stanley points out that the power, industrial, and transportation sectors each account for one-third of Asia's imported natural gas consumption, with Asia as a whole accounting for half of global LNG consumption. India and Thailand face the highest risks in spot LNG, while Malaysia and Indonesia are less affected. Among Japan and South Korea's LNG imports, 11-20% come from the Middle East, primarily for power generation; Singapore has a smaller reliance on Middle Eastern LNG