Analysts warn of a colossal LNG shortage in the world
Quick Look
- The world is facing a shortage of LNG due to reduced supplies from Qatar.
- Europe risks seeing prices rise to $30-40 per mmBtu in the event of a cold winter, as storage facilities are only 72 percent full.
AI-generated summary
Why It Matters
Reduced supplies from Qatar due to the Gulf crisis have led to a shortage of LNG. European storage facilities are 72 percent full, below average.
The world is facing a colossal shortage of liquefied natural gas (LNG). This was stated by The Economist analysts.
With supplies from Qatar dwindling due to the Gulf crisis, Europe is going through a difficult time. Qatar has already shipped 536 fewer LNG cargoes than a year earlier.
“European storage facilities are only 72 percent full, versus an average of 90 percent in 2022-2025. If November turns out colder than forecast, Europe will have to compete with Asia for LNG supplies, which could push prices to $30-$40 per mmBtu (million BTU, British and US units) and beyond. LNG prices in Asia are already hovering around $25 per mmBtu, 140 percent above pre-war levels,” analysts warn.
In the future, the current shortage could lead to a glut of gas - new LNG projects continue to be built, and global capacity could grow by almost 60 percent to 630 million tons per year by 2030. At the same time, demand, on the contrary, is growing more slowly than forecast.
Open Questions
- How long will the Gulf crisis last?
- Will winter be colder than forecast?
