"Now other markets are opening up. And perhaps it would be more profitable for us to stop supplying the European market right now. To move into those markets that are opening up and establish ourselves there. Customers have emerged who are willing to buy the same natural gas at higher prices, in this case due to events in the Middle East, the closure of the Strait of Hormuz."
"Qatar, one of the world's largest liquefied natural gas exporters, ships most of its cargo through the Strait of Hormuz, and any sustained disruption could tighten global supply and intensify competition for spot cargoes. The energy giant has also halted production at the world's largest LNG export plant after Iranian strikes."
"Benchmark European natural gas futures have risen about 50% this week. Meanwhile, the Platts Japan Korea Marker for spot prices has also jumped, as the two countries - which are among the world's top LNG buyers - rely heavily on imported fuel, much of it from the Middle East."
Rising global energy prices from US-Israeli strikes on Iran and Middle East tensions are creating opportunities for Russia to redirect gas exports to more profitable markets. Putin indicated Russia could stop supplying Europe to focus on emerging buyers willing to pay higher prices. Production halts at major LNG facilities and Strait of Hormuz disruptions are intensifying competition for liquefied natural gas cargoes. European natural gas futures have surged approximately 50% this week, while spot prices in Asia have also jumped significantly. Top LNG importers like Japan and South Korea face potential supply constraints, forcing them to compete more aggressively for available cargoes and driving up global benchmark prices.
#russian-energy-strategy #lng-market-competition #middle-east-geopolitics #natural-gas-prices #energy-supply-disruption
Read at Business Insider
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