Qatar's liquefied natural gas exports fell approximately 20% as the Hormuz Strait closure trapped Ras Laffan terminal — the world's largest LNG export facility — behind Iranian naval enforcement [1].

Ras Laffan handles approximately 77 million tonnes per year of LNG, roughly 20% of global supply. Every shipment passes through Hormuz. The closure has reduced Qatar's export capacity to near zero for seaborne LNG. Pipelines to the UAE remain partially operational but cannot absorb the full volume [2].

The LNG disruption hits Europe hardest. Qatar supplies approximately 25% of Europe's imported LNG. European gas benchmarks — TTF and NBP — surged 40% on the day. Storage facilities across the continent were at 62% capacity heading into summer refilling season, below the 70% target that ensures winter adequacy [1].

Japan and South Korea, the other major LNG importers from Qatar, face similar exposure. Both countries have strategic gas reserves but at 15 to 20 days of consumption — far shorter than oil reserves. A prolonged closure forces rationing decisions that affect industrial output and electricity generation [3].

QatarEnergy CEO Saad al-Kaabi said the company was exploring pipeline alternatives through the UAE's Dolphin pipeline, which carries Qatari gas to Oman and the UAE. The pipeline's capacity is a fraction of Ras Laffan's output. The structural reality is that LNG, unlike oil, cannot be rerouted through alternative corridors quickly. The infrastructure is terminal-specific [2].

-- THEO KAPLAN, San Francisco