Iran Conflict Sparks Global Gas Crisis as Qatar's LNG Plant Remains Shut

The ongoing conflict in Iran is causing significant disruptions to the global gas market. The Ras Laffan liquefied natural gas plant in Qatar has been shut down for three weeks, resulting in a loss of energy equivalent to powering Sydney's homes for an entire year.

The plant, which was attacked by an Iranian drone earlier this month, has suffered extensive damage, potentially delaying its return to normal operations. The impact is being felt across the world, with emerging economies already paying the price.

Pakistan, which relies on Qatar for 99% of its LNG imports, is facing a severe shortage of gas, which may not be enough to meet power requirements from mid-April. Textile factories in Pakistan are particularly vulnerable, as they rely on gas for both power generation and heat during processing.

The crisis has wiped out the expected global gas glut this year, with the US still ramping up production but unable to make up for the losses in the Middle East. An interruption of over a month is likely to bring a deficit, and if it stretches to three months, it will be the biggest LNG outage in history.