Qatar’s state-owned energy company QatarEnergy announced on Monday that it has suspended production of liquefied natural gas (LNG) following Iranian drone attacks on two of its key processing facilities. The blockage affects operations at Ras Laffan Industrial City, the world’s largest LNG complex, and Mesaieed Industrial City, which are key hubs for the Gulf state’s gas production.Qatar’s Defense Ministry said one drone struck an energy facility in Ras Laffan, about 80 kilometers north of Doha, while another targeted a water tank at a power plant in Mesaieed, about 40 kilometers south of the capital. There were no casualties in any incident.
The suspension triggered a sharp surge in European gas markets, with the Dutch TTF natural gas benchmark rising nearly 45 percent to more than 46 euros ($54) per megawatt-hour. Analysts said the move could have a significant impact on global LNG prices given Qatar’s position as one of the world’s top producers along with the United States, Australia and Russia.Experts stressed that the decision appeared to be largely precautionary rather than a direct response to the scale of the attacks. The shutdown comes amid broader geopolitical risks in the Gulf, particularly the effective closure of the Strait of Hormuz, through which about a fifth of the world’s seaborne oil passes. Due to this, the possibility of supply disruption has increased.QatarEnergy and international analysts also said the blockage could delay the resumption of normal LNG shipments even after the reopening of the Strait of Hormuz. The country shares with Iran the vast North Field gas reserves, which account for about 10 percent of global known natural gas reserves.Qatar has long signed long-term LNG deals with major global energy companies, including France’s Total, Britain’s Shell, India’s Petronet, China’s Sinopec and Italy’s Eni, making the temporary suspension a potential concern for international buyers as well.
