Qatar Halt on LNG Deliveries to Europe Set to Last Through Fall
Qatar's decision to suspend LNG deliveries to Europe until at least October has significant implications for global energy markets. The country's state-owned oil and gas company, QatarEnergy, invoked force majeure in late September, citing difficulties in shipping liquefied natural gas (LNG) through the Strait of Hormuz due to ongoing conflict in the Middle East.
The strait is a critical chokepoint for global LNG trade, with about a fifth of the world's supply passing through it. However, the increased risk of attacks and damage to ships has made it challenging for Qatar to maintain exports. In March, an Iranian attack damaged Ras Laffan, the world's largest LNG facility, which will take years to return to full capacity.
As a result, LNG prices in Europe and Asia have nearly doubled since the start of the US-Israeli conflict against Iran at the end of February. The reduced supply has also slowed down the filling of European winter reserves this summer.