Gas lines resurface after Hormuz event
The discussion about pipeline gas transportation plans has resumed following the disturbances in the Strait of Hormuz, which revealed the fragility of the global market's reliance on liquefied natural gas (LNG) and led to a significant decline in flow volumes, reaching over 112 billion cubic meters in 2025—about 20% of global gas trade, most of it destined for Asia. Although tanker movements increased after the ceasefire agreement in June 2026, flows remain below pre-war levels. Pipeline projects face substantial challenges related to costs, financing, and negotiations, such as the Power of Siberia 2 project, East Mediterranean gas exports, and transportation through Afghanistan, along with other ventures in Europe and West Africa. Nevertheless, the gas industry does not anticipate a complete and voluntary return to pipelines; instead, it will rely on a strategic mix of investments in projects that connect producers to major markets. The focus will be on balancing LNG, pipelines, and storage to enhance energy security and diversify influence within the international system.
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