IEA warns of major LNG losses from Middle East war

The military conflict in the Middle East has already resulted in the loss of 120 billion cubic meters (bcm) of liquefied natural gas (LNG) supplies to global markets by 2030, according to the International Energy Agency’s Gas Market Report, News.Az informs, citing TASS.

“The Middle East conflict has already caused the loss of around 120 bcm of cumulative LNG supply for the period 2026–2030 when considering the combined effect of the near-term supply disruptions and the medium-term implications for supply. The losses resulting from the Middle East conflict account for around 15% of the expected global LNG supply over the 2026–2030 period,” the report said.

Since the beginning of March, LNG supplies from Qatar and the UAE have already declined by a combined 20 bcm due to the closure of the Strait of Hormuz. Meanwhile, restarting LNG plant capacity could take several weeks, leading to production volumes being about another 10 bcm lower than under normal operating conditions.

The report added that Iran’s strikes on Qatari facilities could reduce Qatar’s LNG production by nearly 70 bcm by 2030, assuming repairs to damaged infrastructure take around four years. In addition, Qatar is expected to delay the North Field East project, which could further reduce LNG supplies by approximately 20 bcm between 2026 and 2030.

News.Az 

By Nijat Babayev