Morgan Stanley: Qatar LNG shutdown may eliminate this year's global supply surplus, putting upward pressure on gas prices

Golden Ten Data, March 9 – According to analysis by Morgan Stanley, the production halt in Qatar, a major liquefied natural gas (LNG) exporter, is likely to eliminate most of the expected supply surplus this year. In a report on March 8, analysts including Devin McDermott stated that if Qatar's LNG shutdown lasts for more than a month, it "will quickly lead to a supply shortage." The world's largest LNG plant, Qatar's Ras Laffan LNG facility, experienced an unprecedented shutdown last week, though the facility remains undamaged. Prior to the outbreak of the Iran war, Morgan Stanley had predicted that with new projects coming online in the US and elsewhere, the global LNG market would face a surplus of up to 6 million tons by 2026. The bank stated that if Qatar does not have a clear path to resume production within about a week, natural gas prices could quickly rise to $30 per million British thermal units or even higher.