Strait of Hormuz Closure Devastates Gulf LNG Exports

The closure of the Strait of Hormuz has severely impacted Gulf LNG exports and global trade, according to a report from the International Trade Centre. The disruption led to a sharp decline in exports, with LNG experiencing the largest drop of 95% year-on-year.

Fertilizer and petrochemical products also saw significant losses, with urea exports falling by 83%, methanol shipments declining by 80%, and ammonia exports dropping by 75%. The report attributed much of the LNG disruption to Iranian missile strikes on Qatar's Ras Laffan LNG complex in March.

QatarEnergy declared force majeure, suspending contractual obligations due to circumstances beyond its control. Repairs to the damaged infrastructure could require as long as five years, leaving approximately 17% of the country's LNG production capacity unavailable during the recovery period.