A powerful cyclone has knocked out production at major Australian LNG plants, compounding global supply disruptions already triggered by Middle East conflicts. Chevron's Gorgon and Wheatstone facilities on Western Australia's coast are working to restore operations after outages caused by Tropical Cyclone Narelle. Australia ranks as one of the world's top three LNG exporters, behind Qatar.

These Australian disruptions come as Qatar's strikes have removed one-fifth of global LNG supplies from the market. With Middle East tensions already constraining flows through the Strait of Hormuz, the timing creates additional pressure on an already tight market. Buyers in Asia face reduced flexibility as they scramble to secure alternative sources.

Ewa Manthey at ING noted that these combined disruptions significantly reduce market flexibility, making it harder for prices to ease even if geopolitical tensions stabilize. The outages underscore how vulnerable global energy markets remain to both geopolitical events and natural disasters. With demand remaining strong and supply chains already stretched, these Australian outages could extend the period of elevated LNG prices and market volatility.