Experts predict a record surge in gas prices due to the suspension of supplies from Qatar
The global energy system is approaching a tipping point.
This is reported by the Financial Times.
Due to the blockade of the Strait of Hormuz and missile strikes on Qatar’s infrastructure, the global flow of liquefied natural gas (LNG) from the region will effectively dry up within the next 10 days.
That is when the last tankers that managed to set sail before the active phase of the conflict began will arrive at their destination ports.
The situation became critical after Iran blocked the exit from the Persian Gulf in response to the U.S.-Israeli military operation.
Qatar, which accounts for about 20% of global LNG exports, was forced to completely halt shipments.
The situation worsened this week when Iranian missiles struck the industrial city of Ras Laffan—Qatar’s main export hub.
QatarEnergy is already preparing to declare force majeure on long-term contracts with China, South Korea, and a number of European countries.
According to an analysis by broker Affinity, the market has not yet felt the full shock solely because a significant number of ships were loaded before the blockade began. However, this “buffer” is rapidly running out.
As a reminder, gas prices in Europe have skyrocketed due to missile strikes on a Qatari LNG plant.
Additionally, due to the war in Iran, the EU is changing its gas strategy.
