Qatar’s LNG Exports Plunge 96%, Country Faces $24 Billion Loss

DOHA: Qatar’s liquefied natural gas (LNG) exports have fallen by as much as 96 percent due to the Iran war and severe disruption to maritime traffic through the Strait of Hormuz, resulting in an estimated $24 billion loss in gas export revenues over the past six months.

According to OilPrice, citing Reuters calculations, Qatar, one of the world’s largest LNG exporters, is facing serious difficulties in maintaining gas shipments to international markets amid the ongoing conflict. Data shows that only 18 LNG cargoes departed Qatar during the past six months, compared with 509 during the same period last year.

The report attributed the sharp decline in Qatar’s LNG exports primarily to disruptions in maritime traffic through the Strait of Hormuz and the deteriorating security situation in the region. Qatar accounts for around one-fifth of global LNG supplies, meaning the sharp reduction in its exports has had a significant impact on international gas markets.

Qatar has suffered particularly heavy losses because a large share of its LNG exports depends on maritime routes through the Strait of Hormuz. According to the report, at least two Qatari LNG tankers have also come under attack.

The decline in Qatari gas supplies has provided an opportunity for US LNG exporters to strengthen their position in global markets, while European countries are facing difficulties securing alternative supplies. Efforts to replenish gas storage facilities ahead of winter are also expected to become more challenging.

The report said European gas storage levels are unusually low for this time of year, raising concerns about potential energy shortages and higher gas prices during the coming winter.

Analysts warn that if maritime traffic through the Strait of Hormuz does not return to normal, a prolonged disruption to Qatar’s LNG exports could trigger further volatility and uncertainty in global energy markets. Competition for limited LNG supplies between Europe and Asia could also intensify.