{
  "id": 195484,
  "title": "Middle East War Throws LNG’s Growth Story Into Doubt",
  "url": "https://urgent.news/2026/08/05/middle-east-war-throws-lngs-growth-story-into-doubt",
  "topic": "world",
  "section": "World",
  "published": "2026-08-05T23:00:00.000Z",
  "source": {
    "name": "OilPrice",
    "slug": "oilprice",
    "url": "https://oilprice.com/Energy/Natural-Gas/Middle-East-War-Throws-LNGs-Growth-Story-Into-Doubt.html"
  },
  "original_language": "en",
  "account": "The ongoing conflict in the Middle East has severely disrupted global energy flows, with liquefied natural gas (LNG) facing a particularly severe situation. While crude oil receives much of the attention, LNG may be in an even worse position and requires more immediate concern. According to Shell's forecast, LNG demand could reach nearly 700 million tons per year by 2050, a 65% increase from 2025 levels. However, the war has caused significant challenges for the LNG industry.\n\nLiquefaction has made natural gas trade truly global, but the war has slowed down LNG exports from the Persian Gulf, Qatar's largest single liquefaction hub, to a trickle. This disruption has led to a significant price premium for LNG, with prices nearly doubling from January to July. Countries, even those with limited financial resources, have paid this premium to secure gas cargoes during peak demand season. However, Asia's shift towards coal power plants, including Japan, the world's second-largest LNG importer, may help alleviate the pressure on LNG demand.\n\nEurope is struggling to refill its gas storage due to high LNG prices, which could lead to a 8% dip in global LNG demand this year if the Persian Gulf flow remains subdued. Recent attacks on LNG carriers in the Strait of Hormuz suggest that normalization of energy trade via the chokepoint is unlikely in the near future. China, which sharply reduced its LNG purchases in the second quarter of the year, is now starting to rebound its imports as electricity demand rises with temperatures and domestic production declines.\n\nDespite the challenges, there are signs of recovery. China's LNG imports are increasing, and the United States is building new liquefaction capacity. However, the war premium on LNG prices is likely to remain significant due to the closure of the Persian Gulf and attacks on vessels in the waterway. In the long term, LNG producers may need to consider expansion plans, but it remains to be seen whether buyers will emerge. Regardless, gas's on-demand, storable nature ensures that demand for LNG will likely rebound when prices fall, as seen in other commodity cycles.",
  "summary": "The Middle East war has caused what may well be an unprecedented degree of disruption in global energy flows. While crude oil gets a lot of the attention—and with good reason—the situation in liquefied gas is arguably worse and deserving of more attention. The war, some believe, could reshape the long-term outlook for the commodity. At the end of June, Shell released a forecast for LNG demand…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}