Qatar's LNG Exports Collapse Amid Strait of Hormuz Crisis

Qatar's liquefied natural gas (LNG) exports have collapsed by as much as 96% since the Iran war crippled its shipments via the Strait of Hormuz, resulting in a staggering loss of $24 billion in sales over six months. The country's state firm QatarEnergy estimates that the damage to its key LNG liquefaction complex, Ras Laffan, will cost it around $20 billion per year in lost revenue and take up to five years to repair.

According to data from ICIS, Qatar managed to export just 18 LNG cargoes in recent months, down from 509 in the same period last year. This decline has significant implications for the global LNG market, with U.S. LNG exports benefiting from high prices and no-conflict-zone origin, while Europe struggles to fill gas storage sites ahead of winter.

The de facto closure of the Strait of Hormuz has trapped around 20% of daily global LNG flows, exacerbating an already tight market. Goldman Sachs recently warned that natural gas prices in Europe need to jump by December for European storage to fill up with enough inventory for the coming winter if the crisis persists.