Iran’s Attacks on Qatar Create Global L.N.G. Supply Shock

Before recent conflicts, the liquefied natural gas (L.N.G.) market was largely controlled by two countries: the United States and Qatar. However, recent events have disrupted this balance.

An image of the L.N.G. facility in Qatar’s Ras Laffan Industrial City shows the extent of the damage caused by Iranian attacks. These events have crippled L.N.G. production, and repairs are expected to take years to complete.

Reported by River Akira Davis, the Japan business correspondent, this story unfolds from both Doha, Qatar, and Tokyo. The date is June 4, 2026.

Concerns of a Duopoly

Years before the conflict in the Persian Gulf, business executives in Japan were discussing a looming threat to Asia’s energy security. The global L.N.G. market was forming a duopoly, with the United States and Qatar set to dominate supply growth by 2030.

Japan, the second-largest L.N.G. importer after China, was concerned about becoming overly reliant on two major suppliers. The United States was seen as politically unstable, highlighted by the Biden administration’s 2024 decision to pause new export facility permits. Qatar, meanwhile, is in one of the world’s most unstable regions.

The Crisis Unfolds

In February, these apprehensions became reality. Iran blocked the Strait of Hormuz, a crucial route for Qatar to ship its L.N.G. worldwide. Shortly after, Iranian strikes damaged the Ras Laffan L.N.G. hub, affecting one-fifth of the global L.N.G. supply.

This disruption caused gas prices in Asia, where most of Qatar’s L.N.G. is exported, to escalate rapidly. Countries such as Pakistan, Bangladesh, India, Singapore, and Taiwan, which rely heavily on Qatari L.N.G., faced immediate challenges.

Henning Gloystein, a managing director for energy at Eurasia Group, emphasized that significant energy supply disruptions occur almost every decade. Stakeholders in the industry should recognize the vulnerability of depending on only two major suppliers.

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