Qatar LNG Disruptions Spark Global Gas Rush
Disruptions to Qatar's LNG exports have sparked a surge in interest for alternative gas supplies from various countries, including Argentina, Timor-Leste, and Tanzania. The 17% reduction in Qatar's LNG export capacity has left buyers seeking new sources of gas, with agreements worth an estimated $60 billion announced or advanced at the Gastech conference in Bangkok.
The situation is particularly dire for Iran, which has lost roughly a third of its gas capacity following the conflict with Qatar. International sanctions limiting access to foreign technology, equipment, and skilled workers have compounded the post-war reconstruction burden for the South Pars field, leaving Tehran struggling to meet domestic demand and export goals.
At the Gastech conference, China Gas Holdings unveiled a 20-year LNG contract with U.S. exporter Venture Global LNG to supply 0.5 million tonnes per annum of LNG starting in 2030. PETRONAS also formalized a 35-year production-sharing contract and gas sales agreement in the Malaysia-Thailand Joint Development Area.
Qatar's North Field and Iran's South Pars occupy the same 9,000-square-kilometer gas formation, which holds 25% of the world's gas resources and supplies 10% of global production. Strikes damaged production and processing facilities on both sides, cutting Qatar's LNG export capacity by roughly 17% and reducing the gas available to Iran's domestic market.
Qatar exported more than 80 million tonnes of LNG in 2025, with India receiving 11.9 mt, Taiwan 8.2 mt while Europe accounted for 11% of total supply. Restrictions on shipping and exports reduced Qatar's hydrocarbon GDP by 25.8% year on year in the first quarter of 2026.
QatarEnergy recently pushed back the launch of the first production unit at the North Field East project to the first half of 2027, while force majeure declarations on contracted supplies for certain buyers were extended into November 2026. WoodMac estimates that total repair costs for Qatari gas-processing capacity will hit ~$5.8 billion.