World’s top LNG buyer doesn’t see Qatar supply coming back soon

Japan's Jera CEO Yukio Kani anticipates ongoing disruptions to the Strait of Hormuz, which could hinder the return of Qatar's liquefied natural gas (LNG) supply to the market in the near future. The Strait of Hormuz accounts for approximately a fifth of global LNG supply prior to the Middle East conflict. Kani stated on Bloomberg TV, "We don't expect Qatar LNG coming back to the market soon."

LNG spot prices have doubled since this time last year, and market participants are concerned about the upcoming winter. The absence of LNG from Qatar, the world's second-largest supplier before the conflict, contributed to the record-high spot prices in September. The tight market may lead to increased competition between Europe and Asia for alternative supply sources, such as the United States.

Although LNG flows through Hormuz from Qatar and the United Arab Emirates increased in September, reaching their highest level since the Iran war, they are still 80% below February levels. In September, Qatar extended force majeure notices to customers in Asia until November and to customers in Europe until December. Kani mentioned that low gas storage levels in Europe, combined with the EU's decision to ban Russian LNG imports from January, suggest that spot prices will likely increase further. He warned that Europe might face a difficult situation if the winter is severe.