The Iran War Is Creating an LNG Shortfall. Don’t Panic Yet

When Qatar said on Monday it was shutting 20% of the world’s liquefied natural gas production after an Iranian attack, the energy market had a flashback to the crisis that hit in Europe in 2021 and 2022 after Russia invaded Ukraine. Thankfully, not every gas crisis is created equal. With a bit of luck, the current upheaval may not be as catastrophic for energy prices. If so, it will be all thanks to China.

The Qatari announcement was shocking. In a terse, 52-word communique, it laid out the news: The Ras Laffan and Mesaieed industrial cities, two sprawling complexes where gas gets super-cooled to about -160C (-256F), transforming into a liquid that loads into tankers, had come under “military attack.” LNG production had “ceased” completely for the first time in 30 years.