Sanctions against Russia, the deterioration of factory equipment, as well as attacks on tanker ships in the Red Sea may lead to a shortage of liquefied natural gas (LNG) in the world, according to a report by the International Gas Union.
US sanctions against the Russian Arctic LNG-2 project, which forced foreign shareholders to suspend participation in it, as well as a ban on LNG transit from Russia to EU ports, will lead to global supply disruptions, organization predicts.
An additional burden on the global LNG industry was put by US President Joe Biden’s administration in 2024 due to a temporary ban on LNG export licenses for American companies. In addition, the new LNG plants under construction in Qatar and the United States will not be put into operation for several more years.
The authors of the article also point out that about a quarter of all global LNG production capacities are over 20 years old, which exacerbates the need for equipment replacement. The growing demand for this type of fuel in the countries of the Asia-Pacific region and the safety risks for navigation in the Red Sea are putting a strain on the LNG supply chain around the world, which further increases the likelihood of shortages, tass.ru reports.
Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished
