QatarEnergy Spent $1 Billion on U.S. LNG as Drones Hit Egypt's Damietta Port
Emergency Atlantic procurement and a first strike on Egyptian gas infrastructure expose the depth of Middle East supply disruption now driving Asian LNG spot prices.
At least two drones struck the US-owned Energos Winter floating storage and regasification unit and a second gas-processing vessel at Egypt's Damietta port on Wednesday (2026-07-29), setting both facilities ablaze. The attack was the first to reach Egypt's Mediterranean gas infrastructure since the Middle East conflict began, arriving as QatarEnergy was completing nearly $1 billion in emergency U.S. LNG purchases to keep Asian customers supplied through the Strait of Hormuz disruption.5,6
Asia absorbs roughly 90% of LNG flows from Qatar and the UAE, according to S&P Global Energy data. About 80% of Qatar's LNG exports are typically bound for Asian buyers, making uninterrupted delivery critical for utilities and industrial consumers across South Korea, Japan, Taiwan and India. JKM, the Asian spot LNG benchmark, closed Friday (2026-07-31) at $21.45/MMBtu.3,6
The QatarEnergy procurement was far from routine. Kpler shipping data show the company bought 33 U.S. LNG cargoes during the period, against just four spot cargoes purchased in the entire previous year. The cargoes are valued at roughly $1 billion in total. Twenty-eight have already reached their destinations; the remaining five are currently en route to South Korea, Taiwan and India.6
The buying spree traces to strikes on Ras Laffan. Iranian attacks hit LNG Trains 4 and 6 at the complex, along with Pearl GTL Train 2, sidelining an estimated 12.8 million tonnes per year of liquefaction capacity by QatarEnergy's own assessment. Goldman Sachs estimated the output pause would cut near-term global LNG supply by about 19%. Before the conflict, roughly 20% of the world's oil and gas moved through the Strait of Hormuz, according to S&P Global Energy.3,1
Qatar has since resumed some tanker movements through Hormuz as exports partially recovered, but the damaged trains at Ras Laffan remain unrepaired. The Atlantic rerouting is covering the shortfall, but U.S. cargoes bound for Asia face longer voyage times than Qatari exports normally do, and competition for Atlantic spot supply has tightened accordingly.2,6
The Damietta attack adds a northward-spreading supply risk to an already strained system. Shell announced this week (week of 2026-07-27) it is selling its BG Cyprus subsidiary — including a 35% stake in the offshore Aphrodite gas field on Block 12 — to Hungary's Mol Group for $720 million. The Aphrodite development route runs through a pipeline to Egypt. Cederic Cremers, Shell's Integrated Gas President, described Aphrodite as "an attractive development opportunity," but the sale transfers both the upside and the infrastructure exposure to Mol.4
European gas storage sits below 54% full, against 64% at the same point a year ago, according to industry data. ICIS analysts have warned the conflict is delaying the expected recovery of Qatari LNG supply ahead of the coming winter. Around 25% of Europe's total gas supply moves through LNG, according to Stifel analyst Chris Wheaton, who said a prolonged Hormuz disruption could trigger a supply squeeze comparable to the 2022 shock following Russia's invasion of Ukraine. ICE Endex TTF front-month was quoted at €59.05/MWh in the August 1 session.3,1
Trading volumes in the Asian LNG derivatives market jumped 251% year-on-year, S&P Global Energy senior price reporter Suyash Pande reported, while physical LNG transactions through the Platts Market on Close process also rose sharply.3
The Cronos LNG project in Cyprus is not due online until 2028, targeting peak production of 2.8 million tonnes per year. Before the war, India sourced close to 60% of its LNG imports from the Middle East, according to S&P Global Energy data. Five QatarEnergy U.S. cargoes remain in transit; if the drone campaign against Egyptian infrastructure broadens, a second round of emergency Atlantic buying would hit a spot market tighter than the one QatarEnergy entered for its first round.4,3,6