Global LNG market faces demand cuts as Hormuz disruptions strain supply

Oil & Gas Journal · Conglin Xu · 2026-10-20 00:00 UTC

Ongoing disruptions in LNG shipments through the Strait of Hormuz, driven by regional conflicts and attacks, are tightening global gas markets with limited alternative supplies...

Prolonged disruptions to LNG shipments through the Strait of Hormuz are putting mounting pressure on global natural gas markets, with limited spare liquefaction capacity leaving demand reductions as a key mechanism for restoring market balance.

Despite elevated prices in Europe and the Asia Pacific, alternative suppliers have limited ability to quickly replace lost Gulf exports, raising the prospect of tighter markets extending into 2027.

European gas prices remain elevated as the Northern Hemisphere enters winter with unusually low inventories. Dutch TTF natural gas futures traded around €88/MWh (about $29/MMbtu) on Oct. 19, while EU underground storage stood at 74.6% of capacity as of Oct. 18, compared with a 5-year seasonal average of about 89%. German storage was particularly low, at about 61%.

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