Hormuz crisis delivers tailwinds for US LNG

Disruptions to Qatari LNG exports have highlighted the risks of concentrated supply, potentially strengthening the long-term position of US exporters despite limited near-term flexibility

US LNG exporters could stand to gain in the long term from the Hormuz crisis, which has laid bare the risks of relying on a single maritime chokepoint for roughly one-fifth of global LNG supply. Qatar swiftly closed its LNG facilities on 4 March, days after the US began its war with Iran and Tehran subsequently blockaded the Strait of Hormuz, triggering the greatest global gas supply shock the market has faced since Russia invaded Ukraine in 2022. Iran subsequently pounded Qatar’s main Ras Laffan liquefaction hub with missiles on 18 March, with Doha confirming “significant damage” to the facilities. Two of Qatar’s 14 trains will remain offline for 3–5 years, according to Qatari Energy Minist