Commerzbank notes that the Strait of Hormuz closure has also halted Qatari LNG shipments, normally one-fifth of global supply, driving TTF natural gas to almost EUR 70/MWh. While EU direct exposure to Qatar is limited, Asian buyers are expected to switch to US LNG and Russia may redirect remaining flows, keeping TTF high until Qatari exports resume.
Qatar LNG halt tightens global gas
“Shipments of liquefied natural gas (LNG) from Qatar were also interrupted by the closure of the Strait of Hormuz. These shipments normally account for around one-fifth of the global LNG supply.”
“As a result, the TTF natural gas price rose to a three-year high of almost EUR 70 per MWh at the beginning of the week. The EU imports only a small amount of LNG from Qatar.”
“However, previous customers in Asia are now likely to step up their demand for LNG from the US, which is likely to increase competition for European customers. In addition, Russia is apparently considering stopping its remaining LNG exports to Europe and supplying LNG to Asia instead.”
“On the gas market, too, the TTF natural gas price is only expected to normalise once Qatar resumes its LNG shipments.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
