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Middle East war disrupts LNG flows, pushing up seasonal premiums

Shell previously forecast LNG demand could approach 700 million tons annually by 2050, and the war has slowed Persian Gulf exports to a trickle.

Reported · Written up by our desk · Energy

OilPrice reports the Middle East war is driving an unprecedented disruption in global energy flows, and it is hitting liquefied natural gas, or LNG, even more than crude in terms of logistics and supply continuity.

According to the article, Shell said in late June that long term LNG demand could reach close to 700 million tons annually by 2050, up 65 percent from 2025 demand, citing gas and LNG as flexible options for energy security.

The piece also points to operational limits from the conflict, noting a force majeure declaration for Qatar’s largest liquefaction hub and slower LNG exports from the Persian Gulf that have fallen to a trickle.

While importers are prepared to pay higher prices during the northern hemisphere’s usual seasonal peaks, the article says some market participants now believe the “war premium” could shift LNG’s long term outlook.

Latest closeWTI crude $75.12 ▼0.9%|Nat gas $2.669 ▼0.5%

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