MOSCOW, March 2. /TASS/. Long-term disruptions to liquefied natural gas (LNG) supplies from Persian Gulf countries in the event of a closure of the Strait of Hormuz could lead to a gas shortage in Europe and a price spike comparable to the 2022 crisis, research director at the consulting company Implementa Maria Belova told TASS.
"In the event of a prolonged closure of the strait and the withdrawal of 20% of global LNG supplies on an annual basis, Europe could face a gas deficit of up to 40 billion cubic meters and a surge in TTF prices comparable to the spring of 2022, when quotations were storming levels of several thousand dollars per 1,000 cubic meters," Belova said.
According to her, the upcoming launch of new LNG production capacities in the United States could partially mitigate the situation.
The Strait of Hormuz is a key oil and gas export route linking the Persian Gulf with the Gulf of Oman and further with the Indian Ocean. More than 20% of global oil and LNG supplies pass through it.
Earlier, state-owned oil and gas company Qatar Energy announced the suspension of LNG and related products production amid the military escalation. Qatar is the world’s third-largest LNG exporter after the United States and Australia.
Earlier, European gas quotations exceeded $585 per 1,000 cubic meters amid the suspension of LNG production in Qatar due to the US and Israeli military operation against Iran. In the spring of 2022, exchange gas prices in the EU for the first time in history rose to nearly $3,900 per 1,000 cubic meters.