Signal Middle East war removed about 17 percent of global LNG supply and damaged Qatari liquefaction capacity in 2026

Summary

The Middle East war that broke out in February 2026 and the resulting restrictions on passage through the Strait of Hormuz disrupted LNG supply in the first half of the year. According to S&P Global figures cited in the report, the restrictions removed about 17 percent of global LNG supply, and damage to 2 of Qatar's 14 liquefaction trains means 12.8 million tonnes a year of capacity may not be restored until 2030 or 2031. A temporary peace agreement in mid-June 2026 allowed shipping through the strait to resume gradually. Even so, the IEA expects global gas demand in 2026 to fall by about 0.5 percent, or roughly 20 billion cubic metres, because of supply disruptions and facility damage. Delays to LNG projects in Qatar and the United Arab Emirates are expected to reduce supply by 24 to 25 million tonnes a year in 2027 to 2029.