US LNG producers are scrambling to cash in on skyrocketing global prices amidst an energy crisis sparked by the Iran conflict. (FT)
For context: An Iranian drone attack propelled the shutdown of QatarEnergy’s Ras Laffan plant, which produces roughly a fifth of the world’s supply. This sent natural gas prices in Europe and Asia surging by 50%. The ongoing conflict could trigger a global energy shock on par with the 2022 Russian invasion of Ukraine.
What comes next: American exporters are scrambling to squeeze extra volume from their Gulf Coast facilities to meet desperate demand abroad. Because US providers often contract on a "free-on-board" basis, traders have the flexibility to instantly reroute their vessels to whichever market is paying the highest premium. But experts say no single country can immediately substitute for Qatar at scale.