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May 2026

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Editorial comment

The King and Queen of the UK have recently concluded their four-day State Visit to the US to mark the 250th anniversary of the Declaration of Independence and celebrate the relationship between the two nations.1

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Whilst there, King Charles III made the first royal address to Congress since Queen Elizabeth II spoke at the Capitol in 1991 following the collapse of the Berlin Wall. “We meet in times of great uncertainty, in times of conflict from Europe to the Middle East which pose immense challenges,” he told the chamber, filled with US lawmakers.2

Of course, this is not the only place the Middle Eastern conflict is being mentioned. Since 28 February 2026, the closure of the Strait of Hormuz has been an unavoidable topic, with the effects seen across the global LNG industry.

Wood Mackenzie reported that the conflict in the Middle East has disrupted 80 million tpy of Gulf LNG exports,3 accounting for the removal of around 19% of global LNG supply from the market.4 Qatar was particularly affected, with QatarEnergy announcing its intention to stop production in early March after extensive damage at its Ras Laffan Industrial City facility. The company declared force majeure a couple of days later, which was shortly followed by reports it would be extending force majeure until mid-June 2026.5,6,7 The North Field East expansion, which would add 32 million tpy, was originally anticipated for November 2026 start-up, and now faces potential delays that could reshape supply growth expectations through 2027 –2028.4

Asian buyers have been especially affected due to their reliance on Qatari LNG, having accounted for 90% of LNG cargoes in 2025. Bangladesh, India, and Taiwan are particularly vulnerable due to rising energy costs and limited alternatives beyond an increased reliance on coal.4

Other exporting nations such as Canada, Mozambique, and Argentina will be looking to capitalise on this gap in the market, alongside the US. In the midst of the conflict, Golden Pass LNG (a joint venture between Qatar Energy and ExxonMobil) announced the loading and departure of the first LNG export cargo from the Golden Pass LNG terminal in Sabine Pass, Texas.8 In addition, the U.S. Department of Energy has approved increases in exports from Kinder Morgan’s Elba Island Terminal in Georgia and Venture Global’s Plaquemines LNG terminal in Louisiana by 22% and 13%, respectively, since closure of the Strait of Hormuz and conflict in the Middle East.9,10

I recently had the chance to sit down with Lars Kjoellesdal, LNG Europe Lead at ICIS, for the first episode of our brand-new LNG Industry Podcast to explore the Strait of Hormuz closure and some of the knock-on effects it is having on the LNG industry, including changes in trade flows, security of supply, changes in global LNG capacity, and a potential outlook for Qatar’s LNG production and re-opening of the Strait. You can listen to the full episode wherever you get your podcasts and on the LNG Industry website: www.lngindustry.com/podcasts/getting-the-strait-of-hormuz-closure-straight/

This month’s regional report comes from Norton Rose Fulbright, and provides a 2026 outlook for the Canadian LNG industry. With various projects including LNG Canada’s Phase 2 expansion, Ksi Lisims LNG, and Tilbury LNG’s Phase 2 expansion expected to take financial investment decision this year, it will be interesting to see the effect on global LNG demand/supply ratios.

You can pick up a copy of the May issue of LNG Industry at Posidonia (1 – 5 June 2026), in Greece, and The Global Energy Show Canada 2026 (9 – 11 June 2026) in Canada.

References References
  1. ‘State Visit to the US and Bermuda’, The Royal Household, (28 April 2026), www.royal.uk/news-and-activity/2026-04-28/state-visit-to-the-us-and-bermuda
  2. COUGHLAN, S., ‘King gets ovation for Congress speech warning of volatile world’, BBC News, (28 April 2026), www.bbc.co.uk/news/articles/c87qglyjr44o
  3. ‘How power markets can adapt to energy crises’, Wood Mackenzie, (24 April 2026), www.woodmac.com/blogs/the-edge/how-power-markets-can-adapt-to-energy-crises
  4. ‘Ras Laffan attacks fundamentally reshape global LNG outlook as recovery timeline likely significantly extended’, Wood Mackenzie, (19 March 2026), www.woodmac.com/press-releases/new-page6
  5. ‘QatarEnergy to stop production of LNG’, QatarEnergy, (2 March 2026), www.qatarenergy.qa/en/MediaCenter/Pages/newsdetails.aspx?ItemId=3892
  6. ‘QatarEnergy declares Force Majeure’, QatarEnergy, (4 March 2026), www.qatarenergy.qa/en/MediaCenter/Pages/newsdetails.aspx?ItemId=3894
  7. ‘QatarEnergy extends force majeure until mid-June 2026’, Edison, (27 March 2026), www.edison.it/en/qatarenergy-extends-force-majeure-until-mid-june-2026
  8. ‘First LNG Export Cargo Departs Golden Pass LNG’, Golden Pass LNG, (22 April 2026), www.goldenpasslng.com/newsroom/first-lng-export-cargo-departs-golden-pass-lng
  9. ‘Energy Department Authorizes Additional Exports of LNG from Elba Island Terminal, Strengthening Global Energy Supply with U.S. LNG’, U.S. Department of Energy (DOE), (2 April 2026), www.energy.gov/hgeo/articles/energy-department-authorizes-additional-exports-lng-elba-island-terminal
  10. ‘Energy Department Approves Immediate Additional LNG Exports from Plaquemines LNG’, DOE, (13 March 2026), www.energy.gov/articles/energy-department-approves-immediate-additional-lng-exports-plaquemines-lng

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