Global LNG Shortage Deepens as Qatar Cuts Supplies

The global market is grappling with a significant shortage of liquefied natural gas (LNG), according to analysts from The Economist. The crisis has intensified following a reduction in supplies from Qatar due to tensions in the Persian Gulf. Qatar has shipped 536 fewer LNG shipments compared to the same period last year, exacerbating the situation.

Europe is particularly affected, with storage facilities only 72% full, down from an average of 90% between 2022 and 2025. Analysts warn that if November proves colder than expected, Europe may have to compete with Asia for LNG supplies. This could drive prices up by $30-40 per MMTU, adding to the existing surge in Asia where prices are already at $25 per MMTU, a 140% increase from pre-war levels.

The current shortage could eventually lead to an oversupply of gas by 2030, as new LNG projects continue to be developed. Global capacity is projected to grow by nearly 60% to 630 million tons per year, while demand is growing slower than anticipated.

Qatar has extended the force majeure regime for LNG supplies to Asia and Europe for another month. The state-owned company has notified Pakistan, Bangladesh, and one customer from India that the suspension of supplies will last until November. Additionally, the Italian company Edison SpA has been informed that supplies will be halted until early December.