Why new LNG projects may not prevent a global gas crunch this winter

AI Summary

Disruptions to LNG loadings from Qatar and the UAE, linked to the situation in the Strait of Hormuz, could reduce global gas output by 10–25 billion cubic meters this winter, according to the International Energy Agency. New LNG projects, including in North America, may ease but are not expected to eliminate the potential shortfall.

Global liquefied natural gas supplies are facing unprecedented challenges due to ongoing disruptions in the Strait of Hormuz. The International Energy Agency reports that LNG loadings from Qatar and the UAE have decreased significantly. As a result, global LNG output is projected to fall between 10 and 25 billion cubic meters during winter. New projects in North America and other regions may partially mitigate the shortfall.