Middle East Tensions and Global Energy Shock: Engie's Lucid Assessment
On the sidelines of a press conference held yesterday by France Mobilité Biogaz (FMB) — the body uniting French public, economic, and industrial stakeholders to support the development of natural and renewable gas as fuel — Julien Hoarau, energy market analyst at Engie, examined the global impact of the Middle East conflict on the energy sector.
He opened his presentation with a stark observation: the current crisis has transcended the energy sphere to become a systemic shock affecting all commodities. In the short term, tensions are primarily crystallizing around the strategic blockade of the Strait of Hormuz.
Julien Hoarau emphasized that this passage is not reserved solely for oil tankers and LNG carriers. It sees the transit of a multitude of critical resources, notably petroleum and petrochemical derivatives, as well as aluminum.
Infrastructure Vulnerability
Another striking point of his analysis regarding this conflict concerns the proliferation of attacks against energy infrastructure. Supported by mapping data, he detailed the offensives carried out in March, categorized by type: storage sites and export terminals, production fields, and oil and gas pipelines (see visual below).
He cited the attack on the Ras Laffan liquefaction plant in Qatar as an example, which represents 17% of the country's LNG production capacity. According to QatarEnergy, the site will remain out of service for an estimated period of 3 to 5 years.
Flow Analysis: LNG vs. Oil
Turning to the analysis of gas and oil energy flows transiting through Hormuz, Julien Hoarau qualified the impact on the gas market. He noted that the bulk of Qatari LNG exports are destined for Asia. Europe's share of Qatari LNG exports is actually very low. Although Qatar is a major player (2% of the global market), the affected volume represents only 3% of global supply. The shock is real, but geographically targeted.
Regarding oil, the situation is more critical, as the Middle East accounts for 23% of global supply. "Despite the blockade of the Strait of Hormuz, oil flows continue thanks to bypass routes, but their capacity is limited. We have lost approximately half of all the oil that transits through the Strait, representing a production drop of nearly 10 million barrels per day for this month of March. This is substantial for a market where consumption fluctuates between 100 and 105 million barrels per day," he observed.
ENGIE is a major player in the energy transition, whose purpose is to accelerate the transition towards a carbon-neutral economy. With more than 90,000 employees in 30 countries, the Group covers the entire energy value chain, from production to infrastructures and sales. ENGIE combines complementary activities: renewable electricity and green gas production, flexibility assets (notably batteries), gas and electricity transmission and distribution networks, local energy infrastructures (heating and cooling networks) and the supply of energy to individuals, local authorities and businesses.
Every year, ENGIE invests on average EUR 12 billion to drive forward the energy transition and achieve its net-zero carbon goal by 2045.
The turnover achieved in 2025 amounts to EUR 71.9 billion. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Sustainable - Europe 120 / France 20, CAC 40 ESG, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select and Stoxx Europe 600 ESG-X).
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