Iran War Dealt Heavy Blow to LNG Market Supply, Global Export Volume Drops to Six-Month Low

Global liquefied natural gas (LNG) exports have dropped to their lowest level in six months, as conflicts in the Middle East have disrupted the flow of natural gas, erasing the recent increase in supply from the United States and other regions. According to ship tracking data, the 10-day moving average of LNG shipments has decreased by about 20% since the beginning of the month, to 1.1 million tons, the lowest level since September last year. The data shows that this decline is mainly from Qatar, followed by the United Arab Emirates. Both countries need to transport fuel to their customers in Asia and Europe through the Strait of Hormuz. The conflict in Iran is evolving into a regional conflict, with the potential to disrupt the LNG market. Earlier this month, Qatar was forced to close its LNG export facility in Ras Laffan - the world's largest LNG plant - after attacks by Iran. Last week's attack further damaged the plant, and it will take years to repair two of its 14 production lines. Global liquefied natural gas production has been increasing over the past year, mainly due to new projects in the United States and Canada. However, the shutdown of Qatar's LNG projects and the actual closure of the Strait of Hormuz (a key waterway that transports about a fifth of global liquefied natural gas) have offset this growth momentum.