The most recent edition of McKinsey’s LNG Buyers’ Survey (July 2025) found that in a global energy market facing potential price volatility, supply chain challenges, and considerable uncertainty, LNG buyers were prioritizing flexibility—including measures such as diversifying supply and varying contract terms.
Since then, geopolitical uncertainty and trade headwinds have escalated. Specifically, the global supply chain disruption caused by the effective closure of the Strait of Hormuz can be described as a system-level event with cascading effects.
Consequently, in our latest pulse survey, we asked buyers for their thoughts on the implications that the disruption may have for LNG procurement strategies (see sidebar, “About the pulse survey”). The responses shed light on the extent to which long-lasting changes in procurement strategies are expected, what is being planned, and the confidence buyers have in their capabilities to manage those changes. This article presents these findings in five key charts.
Procurement strategies are in flux
The disruption to transit in the Strait of Hormuz could have lasting effects on LNG procurement. Overall, around 80 percent of respondents expect some change in their LNG procurement strategy as a result of this disruption, with around half of these expecting an incremental shift, and the other half anticipating a structural shift in strategy.
This sentiment varies across regions, with respondents in Asian countries expecting a greater degree of change than those in Europe.
Several respondents expressed the view that geopolitical conflict could become more frequent and that some form of supply chain disruption may be inevitable, hence the need to adjust procurement strategies. One respondent, for example, indicated that a strategic change in approach is necessary; “There is a shift from cost minimization to prioritizing security of supply.”
Geographic diversification of supply is increasingly a priority
When it comes to the kinds of changes respondents have planned for their LNG procurement strategies, diversification emerges as the top priority for combating disruption. As one respondent told us, “Geographic diversification is inevitable to manage supply disruption.”
All respondents in China and other countries in Asia—and 80 percent of respondents in Europe, Japan, and Korea—say increasing suppliers and geographic diversification is planned in the next two to three years. This is by far the most common change anticipated, cited by 93 percent of all respondents. Greater flexibility, portfolio optimization, and contractual protections also feature as commonly planned changes, but trail diversification by a wide margin.
Force majeure leads the list of contractual changes
In response to disruption, companies are seeking to strengthen contracts in an effort to ensure greater legal protection. Just over half (52 percent) of all respondents named strengthening contractual protections as a change they expect to implement in the next two to three years.
When buyers were asked about the specific contractual elements they would like to strengthen, force majeure was at the top of the list, with one respondent saying, “We will revisit the terms and conditions of triggers of force majeure.” This was followed by strengthening of delivery terms, volume flexibility, and pricing clauses.
Companies are investing in resilience
LNG procurement strategies are likely to change. But that’s just one half of the equation. The survey finds that 66 percent of respondents say companies like theirs are investing in resilience measures, too. Again, this varies by country and region. Most notably, 100 percent of respondents in Southeast Asia say this is the case.
Typical resilience measures include investing in storage infrastructure (cited by 30 percent of respondents), shipping (19 percent), upstream equity (17 percent), floating storage and regasification units (15 percent), regasification (13 percent), and interconnectors (6 percent).
LNG buyers feel relatively confident about their capabilities, but there is work to be done to manage the current level of volatility
Change in procurement strategies may be underway, but it’s worth asking whether LNG buyers have the skills needed to implement these changes. On average, buyers say they feel relatively confident about their trading capabilities, slightly less so about their risk management. However, only 28 percent of respondents globally say their trading capabilities are “fully sufficient” for this level of volatility; 25 percent feel this about their risk management capabilities. This leaves a gap for improvement and upskilling if buyers are to tackle disruption head on.
Findings from the LNG Buyers’ Pulse Survey highlight the impact that disruption to transit in the Strait of Hormuz has had on procurement. Buyers are typically expecting shifts in LNG procurement strategies, most notably through greater geographic diversification of supply. They are also planning to seek greater flexibility, increase portfolio optimization, and strengthen contractual protections, especially when it comes to provisions for force majeure. In parallel, companies are investing in resilience measures as a way to manage disruption and volatility. While plans are in place, capability building may be necessary to give companies the skills to help them manage risk and adjust their strategies for today’s complex operating environment.