Overview
- The US‑Iran war has effectively halted much shipping through the Strait of Hormuz, removing about one‑fifth of traded LNG and sending Asian spot prices to roughly $20–$27 per MMBtu.
- Developing Asian buyers including India, Pakistan, Bangladesh, Thailand, and Vietnam have spent roughly US$7–9.4 billion more on spot purchases to replace lost Qatari cargoes.
- Industry reporting says physical damage at Qatar’s Ras Laffan complex knocked out about 17% of Qatar’s export capacity and repairs are expected to take several years, keeping material volumes offline.
- Buyers have temporarily rerouted demand to U.S. LNG and QatarEnergy is negotiating U.S. purchases to meet contracts, but limited spare global export capacity means U.S. supplies offer only a partial, short‑term cushion.
- The shock is accelerating policy shifts in Asia toward supplier diversification, faster renewables and nuclear plans, and renewed interest in regional gas projects, a move that could reshape power costs and investment choices over the next decade.