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Hormuz crisis shifts about 20% of LNG to interruptible supply
The Strait of Hormuz disruption has left LNG exports from Qatar and the UAE severely constrained for nearly seven months, pushing Europe toward winter supply worries and Asian buyers toward coal and renewables.
OilPrice reports that the Strait of Hormuz crisis has turned roughly 20% of global LNG supply into a type of supply buyers now treat as interruptible.
Nearly seven months after traffic through the strait collapsed, LNG exports from Qatar and the UAE remain severely constrained, according to the outlet. As a result, buyers in Europe and Asia are seeking gas supply that does not depend on Hormuz, including sources from Canada, Mozambique, Indonesia, Papua New Guinea, and Argentina.
The outlet says the war and the Hormuz supply crunch have pushed LNG prices in Asia and Europe to highs last seen during the 2022 crisis. Europe is described as facing difficulty securing supply ahead of winter, while price-sensitive buyers in Asia are scrambling for alternatives, burning more coal, and increasing renewable energy generation targets.
OilPrice also frames the impact as broader than near-term seasonal concerns. It says the disruption has undermined the prior belief that buyers can rely on cheap fixed-term supply from one or two sources, contributing to market volatility and complicating future planning.