East Med Gas Value Shifts from Reserves to Connectivity
The East Mediterranean's gas value has shifted from relying on its large reserves to leveraging connectivity and optionality, according to a recent column by Cyprus Mail. This change in perspective is driven by the 2026 Hormuz disruption, which reshaped global energy security.
A CEPR VoxEU column analyzed the crisis, noting that about 20 million barrels per day of crude and oil products, as well as roughly 110 billion cubic meters of LNG annually, transit through Hormuz. This accounts for a quarter of global seaborne oil trade and nearly a fifth of global LNG trade.
The crisis led to a significant increase in gas prices, with Asian JKM prices rising by around 80% and European TTF prices increasing by about 70%. In contrast, US Henry Hub prices rose only around 13%.