Global LNG markets were jolted this week after Qatar’s Ras Laffan export complex was taken offline by an Iranian drone attack, and U.S. LNG output is expected to rise in the coming months.
U.S. LNG feedgas demand held steady at full utilization. One of the major developments is Golden Pass, where feedgas deliveries are ramping up, and the first LNG is expected later this month.
Geopolitical tensions in the Middle East impacted global LNG markets. The April Title Transfer Facility (TTF) contract settled at $11.09/MMBtu, up $0.17/MMBtu week-on-week, but surged to $15.28/MMBtu early this week after Qatar shut down the Ras Laffan terminal on Monday, the largest LNG terminal in the world. Ras Laffan’s LNG complex has a total liquefaction capacity of 77 MMtpa across 14 LNG trains
The full fallout from the conflict will continue to play out, and could put pressure on global gas prices. While U.S. LNG production is increasing, it’s not enough in the near term to offset the closure at Ras Laffan. The overall market conditions will depend on how long the terminal remains offline. Stay tuned to the LNG Voyager Weekly Report for more insights about the LNG industry.
