QatarEnergy LNG Disruption Prompts Reassessment of Goldman Sachs Supply Outlook
QatarEnergy's 17% LNG capacity loss for 3-5 years following an attack may delay the anticipated global LNG oversupply, potentially benefiting U.S. exporters according to separate analyst views.
According to ZeroHedge reporting, roughly 20% of global LNG flows are currently shut in due to disruptions at the Hormuz chokepoint, with QatarEnergy stating that 17% of its LNG export capacity could remain offline for three to five years following an Iranian attack on the Ras Laffan gas facility. Goldman Sachs commodities expert Samantha Dart had forecasted five months earlier that the 'largest-ever LNG supply wave' would push prices lower, with natural gas prices expected to stay relatively stable through 2027 before an oversupply materializes by the end of the decade. The incident, which is estimated to cause $20 billion in lost annual revenue for Qatar, may keep LNG markets tighter for years and has led analyst James Bevan of Criterion Research to note that the global LNG market share contest now appears more one-sided in favor of U.S. Gulf Coast LNG. This development raises questions about whether Dart's pre-U.S.-Iran conflict outlook will need revision. Source: https://www.zerohedge.com/energy/will-qatarenergys-lng-fiasco-derail-goldmans-prewar-view-mega-lng-wave
[MERIDIAN]: This could keep energy bills higher for longer for families and businesses in Europe and Asia that depend on LNG imports. It shows how distant conflicts can suddenly shift which countries and companies control the world's energy supplies.
Sources (1)
- [1]Will QatarEnergy's LNG Fiasco Derail Goldman's Prewar View Of A Mega LNG Wave(https://www.zerohedge.com/energy/will-qatarenergys-lng-fiasco-derail-goldmans-prewar-view-mega-lng-wave)