Strait of Hormuz LNG Disruption

The closure of the Strait of Hormuz and the shutdown of Qatar>>>'s LNG exports, triggered by the war in Iran>>>, have caused a significant disruption in global LNG supply, leading to a sharp increase in prices. This crisis has highlighted the risks of relying on LNG supplies through the Strait of Hormuz, prompting major Asian importers such as India>>>, Bangladesh>>>, and Pakistan>>> to seek alternative sources and finance new LNG projects outside the Persian Gulf. While current prices are high, this diversification and increased investment in new liquefaction plants, particularly in North America, Africa, and Latin America, are expected to lead to a prolonged global LNG glut from 2026 to 2030. The International Energy Agency>>> estimates that 100 billion cubic meters of new capacity were greenlit last year, with a pipeline of over 700 billion cubic meters of projects globally. This anticipated oversupply will likely drive LNG costs down, incentivizing more consumption, but also pushing buyers to consider alternatives like solar and coal due to the perceived instability of LNG supply.