Qatar's LNG Exports Crash by 96% Amid Strait of Hormuz Crisis

Qatar's liquefied natural gas (LNG) exports have taken a massive hit due to the ongoing conflict in the Middle East. According to Reuters, the country has lost $24 billion in sales over the past six months as its LNG exports plummeted by as much as 96%. This decline is largely attributed to the closure of the Strait of Hormuz, which has trapped about 20% of daily global LNG flows.

The number of LNG cargoes exported from Qatar dropped dramatically from 509 in the same period last year to just 18. The damage to the Ras Laffan LNG complex, the world's single largest LNG-producing facility, is estimated to cost $20 billion per year in lost revenue and may take up to five years to repair.

QatarEnergy has been forced to declare force majeure on some long-term LNG contracts due to the crisis. This move has sent Asian and European gas prices soaring to their highest levels in three years, raising concerns about rebuilding gas inventories in Europe ahead of the next winter.