Qatar Loses 12 MTPA of LNG Capacity as Hormuz Bottleneck Threatens 20% of Global Trade
Updated
Updated · Energy Connects · Jun 8
Qatar Loses 12 MTPA of LNG Capacity as Hormuz Bottleneck Threatens 20% of Global Trade
3 articles · Updated · Energy Connects · Jun 8
Summary
12 million tonnes a year of Ras Laffan capacity has been knocked out, leaving only 12 of Qatar’s 14 liquefaction trains viable and cutting about 17% of the country’s export capacity.
The damage lands as the Strait of Hormuz—route for about 20% of global LNG—remains constrained, limiting any quick recovery; only five LNG carriers reportedly transited between April 22 and May 7.
Asian LNG prices more than doubled to three-year highs, while Dutch TTF gas jumped from about €30/MWh to €74/MWh before easing to around €46/MWh, showing the ceasefire did not remove the market’s risk premium.
Asia is the most exposed because roughly 90% of Hormuz LNG volumes head there; China relies on Qatar for up to one-third of imports, and India sourced 11.2 million tonnes from Ras Laffan in 2024-25.
Consultancies have cut global LNG supply forecasts by as much as 35 million tonnes, and analysts warn that if Gulf export losses persist for four to five months, prices could stay elevated through 2026 and destroy demand.
Can new LNG projects from the Americas prevent widespread economic damage in energy-starved Asian nations?
With Middle East LNG disrupted, will Russia's new pipeline to China permanently reshape global energy alliances?
Is this the crisis that finally forces Asia and Europe to abandon fossil fuel dependency for renewables?
Global Energy Shock: The 2026 Qatar LNG Shutdown and Strait of Hormuz Blockade Reshape Markets and Security
Overview
In March 2026, Iranian missile strikes on Qatar’s vital Ras Laffan energy hub triggered a shutdown of Qatari liquefied natural gas (LNG) production, sending shockwaves through global energy markets. The attacks, condemned by Qatar’s Foreign Ministry, halted work on the massive North Field expansion project and caused a potential delay of over a year. With production unable to restart until hostilities end, the crisis deepened as the effective closure of the Strait of Hormuz further disrupted international energy flows. The combined impact of these events has created far-reaching repercussions, destabilizing markets and threatening global energy security.