Volatility is the norm right now in the LNG shipping markets, with the tide turning swiftly in the span of just one month. In its latest weekly report, shipbroker Intermodal said that “while the global gas market was preparing for a substantial increase in natural gas supply in the next years, driven by new liquefaction projects expected to come online, prevailing concerns were largely confined to the risk of a supply glut, downward pressure on prices, and subdued demand. Meanwhile, a more balanced outlook was anticipated for LNG carriers, as incremental cargoes from increased LNG supply were expected to partially absorb excess tonnage. However, the US decision to engage in a joint military intervention with Israel against Iran has not only challenged this narrative but fundamentally reshaped it toward a supply-constrained market, with the outlook now heavily dictated by escalating geopolitical risk in the Middle East”.

Source: Intermodal

According to Intermodal’s senior analyst, Mr. Nikos Tagoulis, “the de facto closure of Hormuz, coupled with the declaration of force majeure by QatarEnergy at Ras Laffan LNG complex halting gas production, alongside Israeli missile strikes on South Pars gas field and Iran’s retaliatory attack on Ras Laffan, have severely disrupted supply. The latter resulted in damage to two LNG trains, with estimations for a production loss of 12.8 mtpa for three…