The Iran energy crisis has created the strongest possible case for expanding liquefied natural gas export capacity from politically stable producer nations, the head of the International Energy Agency has argued. Fatih Birol, speaking in Canberra, said the loss of 140 billion cubic metres of gas from international markets had dramatically underscored the world’s need for diversified, reliable LNG supply sources that were not dependent on Gulf production or transit through the Strait of Hormuz. He described the overall crisis as equivalent to the combined force of the 1970s twin oil shocks and the Ukraine gas emergency.
Birol said the current crisis demonstrated that existing LNG supply capacity from non-Gulf sources — including Australia, the United States, and Qatar — was insufficient to compensate for a major Gulf gas supply disruption. He called for urgent investment in new LNG export infrastructure from politically stable producer nations to ensure that the world would have more diverse and resilient gas supply options in future emergencies.
The conflict began February 28 with US and Israeli strikes on Iran and has since removed significant volumes of both oil and gas from world markets. At least 40 Gulf energy assets have been severely damaged, and the Hormuz strait — through which approximately 20 percent of global oil flows — remains closed. The IEA deployed 400 million barrels from strategic petroleum reserves on March 11 in its largest emergency action.
Birol confirmed further releases were under consideration and said consultations with governments across three continents were ongoing. He called for demand-side policies including remote work, lower speed limits, and reduced commercial aviation. He met with Australian Prime Minister Anthony Albanese and specifically highlighted Australia’s potential to expand its LNG export capacity as a strategic contribution to global energy security.
Trump’s 48-hour ultimatum to Iran to reopen the strait expired without result, and Tehran threatened retaliatory strikes on US and allied energy and water infrastructure. Birol concluded that LNG export expansion from stable producers was not just a commercial opportunity — it was a global energy security imperative. He called on governments and investors to treat LNG infrastructure investment as a strategic priority in the light of what the Iran crisis had revealed about global gas supply vulnerability.