LNG shipping costs skyrocket as Qatar halts LNG production

2026-03-03 - 08:14

Shafaq News- Washington Global liquefied natural gas (LNG) markets are under pressure after Qatar abruptly halted production, driving Atlantic shipping costs to record highs and forcing India to ration gas for domestic industries. Sources familiar with the market told Reuters on Tuesday, that charter rates for LNG carriers in the Atlantic surged 100%, topping $200,000 per day per vessel. In India, Gail and Oil India Ltd. reduced deliveries to local buyers starting, while Petronet, the country’s largest gas importer, warned of lower Qatari LNG shipments. South Korea is also scrambling to secure alternative supplies to prevent shortages. The disruption comes amid escalating tensions in the Middle East, following US and Israeli strikes on Iran. In response, Tehran halted navigation through the Strait of Hormuz, a critical corridor for global oil and gas flows. Satellite data shows ships crowding key Gulf ports, prompting many tanker owners, oil companies, and trading firms to suspend shipments through the Strait.