Global Gas Supply Crisis: Qatar's Force Majeure Amid Middle East Conflict

Qatar has invoked force majeure on its gas exports due to the U.S.-Israeli conflict with Iran, impacting 20% of the global liquefied natural gas market. The shutdown could last over a month, affecting European and Asian markets and leading to increased competition for LNG cargoes worldwide.

Qatar invoked force majeure on its gas exports on Wednesday as the U.S.-Israeli conflict with Iran continues to escalate. As a result, global gas markets are expected to experience significant shortages, even if the hostilities were to end immediately, because Qatar supplies roughly 20% of the world's liquefied natural gas (LNG).

Sources within Qatar Energy (QE), the state-owned energy company, confirmed that gas liquefaction would cease this week, with no restart expected for at least two weeks. This cessation is crucial given Qatar's pivotal role in supplying Europe and Asia, particularly countries like China, Japan, and India. QE has reached out to its clients but has yet to provide a timeline for operations resuming.

The conflict has severely restricted shipping through the Strait of Hormuz, a critical route for LNG exports, driving European and Asian gas prices to multi-year highs. As production halts, competition for LNG cargoes between the Atlantic and Pacific basins intensifies, disrupting global energy markets.

(With inputs from agencies.)