Qatar LNG Exports Plunge 96% as Strait of Hormuz Disruption Persists

Qatar’s liquefied natural gas exports have fallen 96% as restrictions on shipping through the Strait of Hormuz disrupt deliveries to buyers in Asia and Europe, tightening competition for replacement fuel ahead of winter.

Qatar shipped 18 LNG cargoes through the end of August, down from 509 during the same period a year earlier. Lost gas sales during the six months through Aug. 26 were estimated at $24 billion.

QatarEnergy has extended force-majeure notices affecting Italian utility Edison and some Asian customers. Edison is not expected to receive further cargoes until early December, while certain Asian customers face suspensions lasting into November.

Before the disruption, Qatar accounted for roughly 20% of worldwide daily LNG consumption. The shipping restrictions have reduced Qatari supply and increased competition for alternatives, including U.S. LNG.