Iran War Disrupts Global LNG Supply, Causing Price Surges and Shortages

The ongoing war in Iran has disrupted Qatar's Ras Laffan liquefied natural gas (LNG) plant, causing widespread shortages and price surges globally. The plant, which was shut down after an Iranian drone attack, has suffered extensive damage, potentially delaying its return to normalcy.

Qatar provides four-fifths of the LNG consumed by South and Southeast Asia, with Pakistan relying on it for 99% of its imports. The country's officials have warned that there may not be enough gas to meet power requirements from mid-April, affecting textiles and other industries that rely on gas for power generation and processing.

The crisis has also led to a surge in gasoline and jet fuel prices, with cooking gas shortages triggering violence in India and farmers fretting about diesel and fertilizer. The lack of spare capacity, strategic reserves, and easy replacements means LNG is one of the most acute pain points in this expanding crisis.