IEA says Iran war will keep the natural gas market tight for two years
Summary
The International Energy Agency (IEA) says the war in Iran will reduce the supply of natural gas worldwide for about two years. Damage to a major liquefied natural gas (LNG) facility in Qatar and the closure of the Strait of Hormuz have disrupted energy exports and will keep natural gas markets tight until at least 2027.Key Facts
- The Iran war has damaged LNG facilities in Qatar, cutting their capacity by 17%.
- Repairs to the damaged Qatari facilities could take up to five years.
- The Strait of Hormuz, a key passage for oil and LNG, is closed due to the conflict.
- About 20% of global oil and LNG supplies are blocked by the closure of the Strait of Hormuz.
- The IEA predicts a loss of 120 billion cubic meters of LNG supply through 2030.
- New LNG projects in other regions will eventually help, but supply will stay tight through 2026 and 2027.
- Demand for natural gas dropped in March due to higher prices and efforts by some Asian countries to use less gas.
- The length of time the Strait of Hormuz remains closed is uncertain and will affect gas demand in 2026.
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