Qatar LNG Supply Remains Elusive Amid Strait of Hormuz Disruptions

The head of Japan's Jera Co., the world's largest liquefied natural gas (LNG) buyer, is skeptical about Qatar's LNG supply returning to the market anytime soon. In an interview with Bloomberg TV on Friday, Yukio Kani stated that 'we don't expect Qatar LNG coming back to the market soon.'

The Strait of Hormuz disruptions have already curtailed flows from a region that accounted for about a fifth of global supply before the Middle East war. The lack of LNG from Qatar has contributed to higher spot prices, which are now double what they were at this time last year.

LNG spot prices reached their highest level since late 2022 in September, and market participants are concerned about this coming winter. The tighter market is expected to lead to greater competition between Europe and Asia for alternate supply from the US and elsewhere.