Middle East LNG industry remains hostage of Iran war
UNG•Qatar’s LNG exports remain far below pre-war levels as conflict and uncertainty around the Strait of Hormuz disrupt shipments. Qatar exported 1.6 million tons in September, less than a quarter of its pre-war average, and October exports are on track to fall to 0.6 million tons.
1. Exports remain curtailed
Qatar’s LNG exports rose in September to 1.6 million tons, their highest level since the conflict began, but remained below a quarter of the pre-war average. October exports are on track to fall to 0.6 million tons, while QatarEnergy has extended force majeure notices for customers in Asia and Europe.
2. Restart faces logistical hurdles
Qatar’s LNG system depends on production from the North Field, separation and export of condensate, storage and reliable shipping. Limited storage and a smaller LNG tanker fleet make sustained, safe passage through the Strait of Hormuz important to restoring exports.
3. Expansion at risk
Qatar is expanding LNG capacity to 142 million tons a year by 2030, which would represent roughly a quarter of global capacity. The article says the project may remain stranded if the security of the Strait of Hormuz is not governed by a credible, durable agreement.
