Key facts
- Approximately 20% of global LNG supply is now interruptible due to the Strait of Hormuz crisis.
- Qatar's LNG export capacity was cut by roughly 17% following strikes on two production units at Ras Laffan.
- Full repairs on damaged liquefaction trains in Qatar are expected to take up to three years.
- China Gas Holdings secured a 20-year LNG contract with U.S. exporter Venture Global LNG.
- A 35-year production-sharing contract and gas sales agreement was formalized for the Malaysia-Thailand Joint Development Area.
- Timor-Leste plans two new greenfield LNG plants, one for the Greater Sunrise fields and another for remaining Bayu-Undan gas.
The Strait of Hormuz crisis has significantly reshaped the global liquefied natural gas (LNG) market, rendering approximately 20% of global supply interruptible and driving buyers to seek more diversified sources. Strikes on production and processing facilities in Qatar have cut its LNG export capacity by roughly 17%, with full repairs on damaged liquefaction trains expected to take up to three years. QatarEnergy has pushed back the launch of the first production unit at the North Field East project to the first half of 2027, and force majeure declarations on contracted supplies have been extended into November 2026.
In response to these disruptions, buyers are actively pursuing alternative supplies. At the Gastech conference in Bangkok, China Gas Holdings announced a 20-year LNG sales and purchase agreement with U.S. exporter Venture Global LNG for 0.5 million tonnes per annum starting in 2030. Additionally, PETRONAS, PTTEP JDA, and the Malaysia-Thailand Joint Authority formalized a 35-year production-sharing contract and gas sales agreement in the Malaysia-Thailand Joint Development Area. Timor-Leste also announced plans for two new greenfield LNG plants, one supplied by the Greater Sunrise fields and another utilizing remaining gas from Bayu-Undan.
The situation in Iran is also dire, with the country having lost roughly a third of its gas capacity. Pre-existing hurdles like international sanctions have compounded reconstruction efforts for the South Pars field, leaving Tehran struggling to meet domestic demand and export goals.