The US-Israeli war in Iran has upended the global LNG market, with Qatar forced to shut its LNG export facility in Ras Laffan after Iranian strikes. Global exports of liquefied natural gas fell to a six-month low, wiping out recent increases in supplies from the US and elsewhere as the conflict in the Middle East restricts flows. The 10-day moving average for LNG shipments has fallen about 20% since the start of the month to 1.1 million tonnes, the lowest since September, according to an analysis of ship-tracking data.
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The drop is coming mostly from Qatar and, to a lesser extent, from the United Arab Emirates, the data shows. Both countries need to ship fuel through the Strait of Hormuz to reach customers in Asia and Europe, Bloomberg writes.
Global LNG production has been growing steadily over the past year, driven largely by new projects in the US and Canada. This is now being offset by the loss of Qatari liquefied gas and the virtual closure of the Strait of Hormuz, a key waterway for about a fifth of global supplies.
The European Union's energy chief has urged member states to start filling gas storage facilities as soon as possible to avoid competition for supplies that could cause prices to spike over the summer as the bloc seeks to cushion the fallout from a war with Iran.
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Tehran recently warned that it would attack key infrastructure in the Middle East if US President Donald Trump follows through on his threat to “destroy” Iranian power plants if the Strait of Hormuz is not opened quickly.
It was previously reported that Iran is threatening to mine the entire Persian Gulf if its coast or islands are attacked.
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