The world is preparing for a new energy crisis
There is simply “no substitute” for the huge volumes of Qatari gas supplied through this narrow passageway, which, unlike oil, cannot be periodically rerouted through pipelines, explains Investing.com.
Vessel tracking data confirms that at least 11 large LNG tankers have suspended their voyages, and Japanese shipping giants have ordered their vessels to wait in safe waters.
Production risks and regional shortages
The crisis is also triggering a dangerous feedback loop in production. LNG plants need a steady flow of tankers to keep refrigeration units running. Without exports, Qatar and the UAE may be forced to shut down production completely.
The consequences extend not only to the Gulf states, but also to the Mediterranean and Eurasia. Israel’s gas fields are shut down and Iranian pipelines to Turkey are threatened, so countries like Egypt have to resort to costly sea transportation.
This situation creates a global “bidding war” for the few remaining available cargoes, ensuring that whether the conflict remains localized or not, the economic costs will be felt by consumers around the world.
Direct implications for Moldova
Moldova could again face a price shock as the country has switched to purchasing gas from the European free market. Blocking the strait will lead to a shortage of liquefied natural gas (LNG) in Europe, which will cause a price spike at the hubs (TTFs) to which Moldovan Energocom’s purchase prices are linked.
In case of a crisis, Moldova can use the Trans-Balkan corridor and the “Vertical Gas Corridor” for supplies from Greece, which the authorities intend to take advantage of, but this gas will still be purchased at skyrocketing market prices.
