TOKYO ¨C Countries across Asia are bracing for a complete cutoff in coming days of Middle Eastern liquefied natural gas, a fuel that underpins power generation and industrial output across much of the region.
The blockade of the Strait of Hormuz as well as repeated strikes on the world¡¯s largest LNG export complex in Qatar have knocked roughly 28 million tons of supply from the market this year. That represents nearly the entire global supply growth forecast for 2026. It could take years for the flow of LNG from the Mideast to return to prewar levels.
¡°It¡¯s a significant tightening of the market ¡ª we¡¯re talking reduced production until the end of the decade,¡± said Henning Gloystein, managing director for energy at Eurasia Group, a political risk research firm. In Asia, in the next week, ¡°that¡¯s when the actual impact, the physical impact, of nondelivery will begin to happen,¡± he said.
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