FT warned of the threat of a sharp and rapid reduction in LNG supplies

The world is facing the threat of a drastic reduction in the supply of liquefied natural gas (LNG), as the last tankers from the Persian Gulf countries will arrive at their destinations in the coming days. This was reported on March 22 by the Financial Times newspaper.

"LNG shipments from the Persian Gulf will cease in the next 10 days when the last few tankers with cargo reach their destinations," the article says.

The situation is connected with the suspension of exports from Qatar, which provides about a fifth of the global LNG market, after the blockade of the Strait of Hormuz and attacks on the largest Ras Laffan complex. At the same time, some of the cargo shipped before the conflict began is still on the way, which temporarily smooths out the shortage. According to shipping services, only one remaining LNG cargo from the region is being sent to Asia, while six shipments are being sent to Europe.

The main buyers, especially in Asia, are already preparing for shortages and rising prices: spot LNG quotations according to the Platts JKM index have roughly doubled since the beginning of the conflict, to about $23 per million British thermal units ($820-840 per 1 thousand cubic meters of gas). Additionally, market participants note an increase in shipping costs: freight rates have increased, and routes have lengthened due to the need to bypass the conflict zone, which further increases the final cost of gas for importers.

It is noted that the most vulnerable countries remain highly dependent on imports, including Pakistan and Bangladesh, where gas consumption restrictions are imposed. Experts warn that if the crisis persists, countries will be forced to switch to more expensive and less environmentally friendly energy sources, and the global LNG market will remain tense in the medium term.

Bottleneck: The Middle East is pushing the US into recession

Conflict is becoming an economic problem

On March 15, President of the United States Donald Trump appealed to countries dependent on oil supplied through the Strait of Hormuz, blocked by Iran, to ensure the safety of this transport route. He then threatened NATO with a "bad future" if it refused to help unblock the water area.

Denis Astafyev, an entrepreneur and founder of the SharesPro fintech platform, said on March 20 that a sharp rise in oil prices could trigger a recession in a number of the world's largest economies, despite attempts to mitigate the situation with the help of strategic reserves. According to him, the International Energy Agency announced the largest release of reserves in history — 400 million barrels from 32 countries.

All important news is on the Izvestia channel in the MAX messenger.