LNG buyers press Qatar and the UAE for cheaper deals and supply guarantees after the Hormuz shock

According to a Reuters report on Thursday, 23 July 2026 (1 Mordad 1405), Asian and European buyers of liquefied natural gas (LNG) are preparing to seek lower prices and stronger supply guarantees from Qatar and the United Arab Emirates, as disruption in the Strait of Hormuz reshapes how the market prices Persian Gulf supply risk. Buyers, traders and industry executives said higher insurance costs and concerns over future disruptions could give customers greater leverage in negotiations with the two major global suppliers.

Six Asia-based traders told Reuters that future negotiations would focus not only on lower prices but also on security and diversification of supply, including guarantees that replacement cargoes would be provided if shipments through the Strait of Hormuz are disrupted, potentially from projects outside the Persian Gulf such as QatarEnergy's Golden Pass LNG in the United States. Long-term LNG contracts from Qatar and the UAE were typically priced at about 12.6% to 12.7% of Brent crude before the Iran war, while some more recent agreements were concluded closer to 12.3%, according to an industry source.

The reassessment comes as both countries pursue major expansions: QatarEnergy says its North Field projects will raise Qatar's LNG capacity from 77 million to 142 million tonnes a year by the end of 2030, while ADNOC's Ruwais LNG project, with an export capacity of 9.6 million tonnes a year, will more than double the company's LNG output.