Qatar's Gas Crisis Sparks European Energy Nightmare

The European energy crisis is deepening as Qatar's natural gas supply disruptions threaten to leave the region short of fuel for winter. The Europeans have been phasing out Russian piped gas since 2017, replacing it with liquefied natural gas from Qatar. However, Qatar's Ras Laffan facility, which produces and exports LNG, was severely damaged in an Iranian attack in February.

Since then, only one cargo of Qatari LNG has made it out of the Persian Gulf, and traffic in and out of the region remains severely disrupted. The Qatari government has declared force majeure, extending its force majeure declaration through September 30th. This comes as European winter storage for gas is at an all-time low, with less than half the normal capacity available.

The situation is particularly dire because natural gas cannot be easily stored or transported like oil. LNG facilities are vulnerable to attack and disruptions can have far-reaching consequences. The United States is unlikely to be able to fill the gap left by Qatar's reduced supply.