When the Middle East conflict erupted on 28 February, LNG buyers scrambled to judge the impact a loss of Qatari and Emirati exports would have on the market. Some buyers turned to other producers, primarily in the US and Australia, to secure future volumes while price-sensitive consumers pre-emptively cut demand.
The key question hanging over the unfolding crisis was how long it would last. Qatar’s 77mn t/y Ras Laffan facility was struck by Iran in March, knocking out 12.8mn t/y of capacity for three to five years, but its remaining 64mn t/y, plus Adnoc’s 6mn t/y Das Island facility, was still functional. If the Strait of Hormuz could reopen, these trapped LNG cargoes could quickly return to the market. (CONTINUED - 1453 WORDS)
