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Opinion
Conflict in the Middle East is boosting the value of the Arctic windfall
As traditional energy centres become less stable, the Arctic’s resources, shipping routes and infrastructure are growing in importance
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Nong Hong, PhD, is executive director and senior fellow at the Institute for China-America Studies in Washington, US, and a senior fellow with the Beijing Club for International Dialogue.
Gulf exporters are scrambling to bypass the Strait of Hormuz after Iran choked off most of the maritime traffic in one of the world’s most critical energy corridors. Saudi Arabia and the United Arab Emirates rushed to divert exports through overland pipelines; officials warned that even naval escorts could not guarantee safe passage. About a fifth of the world’s oil and liquefied natural gas (LNG) trade passed through this narrow waterway.
The immediate shock was felt in the Gulf. The strategic aftershock is being felt much farther north.
That shift is visible in Alaska. The US-backed Alaska LNG project now aims to finalise investment decisions on the pipeline this year and on the export terminal early next year, with first exports by 2031. With planned capacity of 20 million tonnes a year and preliminary commitments covering about 13 million tonnes, the project is gaining fresh momentum. Importantly, Alaska offers something Gulf suppliers cannot: direct access to North Asia without passing through Hormuz.
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