Australia’s largest LNG exporter: The world underestimates the impact of war on liquefied natural gas supply

Golden Ten Data reported on May 20 that, according to Australia’s largest liquefied natural gas (LNG) exporter, the world is currently underestimating how long the impact of the Iran war on global LNG supply will last. Woodside Energy Group CEO Meg O’Neill stated: “I believe that the market, consumers, and society as a whole have yet to fully realize the seriousness of this situation; there is a widespread belief that things will return to normal soon.” Since the outbreak of the Iran war in late February, the Strait of Hormuz has been almost entirely closed, disrupting one-fifth of the world’s liquefied natural gas supply. Qatar, a major producer, has seen its largest export facility suffer severe damage, and it may take years to repair the facility and restore production capacity. Despite weeks of negotiations between the two parties, a peace agreement between the US and Iran remains out of reach. O’Neill stated: “Given the significant supply disruptions out of the Middle East, customers’ top priority at the moment is to secure short-term supply.” She added: “Customers expect us to strictly fulfill our contractual obligations; if there is any extra supply, they also hope we will give them priority.”