Jera chief expects prolonged disruptions in Qatari LNG supplies — The National

In the UAE, Yukio Kani, chairman and global chief executive of Japanese company Jera, said he does not expect Qatari liquefied natural gas to return to the market quickly because of disruptions in the Strait of Hormuz. As The National reports, he linked the situation to growing concerns among market participants ahead of the winter season.

Prices and alternative supplies

According to Kani, spot LNG prices are twice as high as they were during the same period last year. The absence of Qatari LNG, which before the war in the Middle East was the world’s second-largest supplier by volume, contributed last month to spot prices rising to their highest level since late 2022.

Supply restrictions are intensifying competition between Europe and Asia for alternative LNG cargoes from the United States and other sources. Before the war, the region accounted for approximately one-fifth of global liquefied gas supplies.

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Transit through the Strait of Hormuz

According to Kpler, LNG volumes passing through the Strait of Hormuz from Qatar and the United Arab Emirates rose in September to their highest level since the start of the war with Iran. At the same time, transit remained 80% lower than in February.

Last month, Qatar extended force majeure for supplies to long-term customers in Asia until November and in Europe until December. Kani also noted that seasonally low gas inventories in Europe and the European Union’s policy of banning imports of Russian LNG from January could further push spot prices higher.