Weak links in global natural gas flows

Data shows that around 20% of global LNG shipments passed through the Strait of Hormuz in 2024, primarily originating from Qatar and the United Arab Emirates (UAE). The U.S. Energy Information Administration (EIA) also estimates that 83% of the LNG transported through this route is destined for Asia, with China, India, and South Korea being the three largest destination markets.

Looking more broadly, more than half of global LNG flows pass through strategic chokepoints such as the Strait of Hormuz, the Strait of Malacca, the Suez Canal, the Danish Straits, the Turkish Straits, and the Cape of Good Hope. This highlights how the global LNG market is heavily dependent on a small number of narrow maritime routes. A disruption at any of these chokepoints can rapidly ripple across the entire supply chain.

Among them, the Strait of Hormuz is considered the most sensitive bottleneck. Unlike crude oil—which has some pipeline alternatives in the Middle East—LNG is almost entirely dependent on maritime transport to reach global markets. As a result, any disruption in Hormuz can quickly push global gas prices higher, particularly in Asia, a region heavily reliant on Qatar’s LNG supply.

That risk is becoming increasingly evident amid the current conflict. According to Reuters, since tensions involving Iran escalated in late February, LNG export activities through Hormuz have been severely disrupted. As a consequence, Asian countries have been urgently seeking alternative supplies, prompting some LNG cargoes originally bound for Europe to be redirected toward Asian markets.

In other words, Hormuz is not merely an important maritime route. During periods of escalating conflict, it becomes a critical chokepoint capable of determining the overall stability of the global LNG market.

According to vneconomy.vn

Source: https://vneconomy.vn/nhung-diem-nghen-cua-dong-chay-khi-dot-toan-cau.htm