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LNG buyers push for lower Qatar and UAE prices as Middle East war reshapes deals

Reuters reports importers want lower prices and more flexible long term contracts, citing higher insurance and freight costs tied to shipping risk from the Persian Gulf and Strait of Hormuz.

Reported · Written up by our desk · Energy

The war in the Middle East has weakened the bargaining leverage of major regional LNG exporters Qatar and the United Arab Emirates, Reuters reports, as buyers look to renegotiate future long term supply agreements.

Industry executives at LNG importing companies told Reuters that importers from Europe to Asia plan to seek lower prices and higher contract flexibility, reflecting concerns over shifting supply reliability and deal terms in a more war risk environment.

Reuters also cited damage and disruption from the Iran conflict, including difficulties moving cargoes through the Strait of Hormuz and stalled or delayed LNG capacity expansion plans due to missile hits on infrastructure.

European LNG buyers believe they have greater negotiating power now, with Reuters pointing to surging insurance and freight costs for shipments out of the war risk region. Nicola Monti, chief executive of Italy's utility and LNG, said new contracts in the Gulf would require accounting for rising insurance costs.

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