It may sound counterintuitive. After all, the Strait of Hormuz remains blocked. The world’s largest LNG plant is idled and Qatar says repairing it will take at least three years. And yet, the contours of a long-term surplus are already starting to emerge.
The outlook for LNG prices is crucial in Europe and Asia, where the commodity is either burned to generate electricity and heat, or used as feedstock to produce chemicals and fertilisers. In those regions, where LNG prices go so goes inflation.
