Global LNG Shortage Deepens as Qatar Exports Plummet
· Business · Hindustan Times, economist, The Economist
The global liquefied natural gas market is facing a severe supply crunch after Qatar, previously the world’s largest producer, declared force majeure following the closure of the Strait of Hormuz. Qatar has shipped only 98 cargoes this year, marking a shortfall of 39 million tonnes or 9% of last year's global supply. Asian LNG prices have surged 140% compared to pre-war levels, reaching approximately $25 per million British thermal units. While Asian importers have managed to source alternative supplies from the US, Australia, and Nigeria, European gas storage levels remain at a record low of 72%. The market's stability now hinges on weather forecasts for a mild winter, as buyers continue to compete for limited Atlantic cargoes.
Why it matters
The sustained LNG shortage threatens to keep global energy prices high, increasing costs for power generation and industrial sectors that rely on natural gas. This volatility forces countries to compete aggressively for limited supplies, risking further inflation and energy insecurity.
Read the original report — Hindustan Times
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