The crisis in the Strait of Hormuz remains unresolved, with global LNG exports falling to a six-month low

CaiLian Press, March 23rd (Edited by Bian Chun) – With the escalating conflict between the US and Iran disrupting crucial supply routes and offsetting recent production increases from the US and other producing countries, global liquefied natural gas (LNG) exports have fallen to their lowest level in six months.
According to data compiled by the media using information from ship tracking company Kpler, the 10-day moving average of LNG shipments has declined by approximately 20% since early March, reaching around 1.1 million tonnes, which is the lowest level since September last year.
The significant decline was primarily attributed to the reduction in LNG exports from Qatar, with the decline in exports from the United Arab Emirates also exerting a certain impact. Both countries rely on the Strait of Hormuz to transport fuel to their core markets in Asia and Europe.
The Strait of Hormuz, a narrow waterway that carries about one-fifth of the global LNG trade, has seen its navigation nearly disrupted, effectively cutting off supply and exacerbating concerns about the ongoing energy crisis.
The war has hit particularly hard for Qatar, one of the world’s largest exporters of liquefied natural gas. Earlier this month, it was forced to shut down its vast Ras Laffan export complex — the world’s largest LNG facility — following the Iran-related attacks.
The latest round of attacks last week further damaged the facility, with at least two of its 14 production lines expected to be shut down for several years, raising concerns about long-term supply constraints in the market.
The interruption occurred amidst a steady increase in global LNG production, with new export capacities being continuously released in the United States and Canada. However, the loss of production in Qatar, coupled with disruptions in transportation through the Strait of Hormuz, completely offset this increase, leading to tightening supply in the global market.