Qatar's force majeure deepens global gas shortage
Qatar declared force majeure in March, cutting Asian LNG shipments by 536 cargoes and pushing prices to $US25 per million BTUs.
In March, Iran closed the Strait of Hormuz after being attacked by America and Israel. Qatar, then the world's biggest LNG producer, declared force majeure and stopped fulfilling contracts.
Qatar has since shipped just 98 cargoes, 536 fewer than in the same period last year. The shortfall is 39 million tonnes, about 9 per cent of last year's global supply.
Europe's gas storage is just 72 per cent, the lowest on record at this time of year. Germany's is just 57 per cent.
If a cold winter hits before Qatar restarts exports, Europe could face emergency rationing and prices could spike to $US30 to $US40 per million BTUs.
- 536 fewer than last year
- Cargoes missed
- $US25 per million BTUs
- Current Asian LNG price
- 140 per cent higher
- Price increase from pre-war
- 72 per cent
- European storage level
Why it mattersHigh gas prices boost household heating bills and strain manufacturing. A severe shortage could force Europe to cut supplies to industry.
AustraliaAustralia is a major LNG exporter to Asia, so higher prices benefit exporters short-term but may cool Asian demand later.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
Open this story in InSnip →
