Strait of Hormuz Disruptions Pose Significant Risk to Global LNG Trade
Nearly one-fifth of global liquefied natural gas (LNG) trade is at risk due to its reliance on a narrow corridor in the Strait of Hormuz, according to a joint report by the International Energy Forum and the Japan Organization for Metals and Energy Security.
The Strait of Hormuz connects the Persian Gulf to the Arabian Sea and serves as a critical transit route for LNG shipments. The report found that 20% of worldwide LNG trade passes through this corridor, leaving energy-dependent nations vulnerable to disruptions caused by bottlenecks, geopolitical conflicts, or shipping issues.
The study revealed that global liquefaction infrastructure is insufficient to absorb the shock of supply line failures through the Strait. In 2025, an estimated 14 billion cubic meters of replacement capacity was lacking, demonstrating that alternative export terminals cannot quickly ramp up production when supply lines falter.