QatarEnergy halted production of liquefied natural gas (LNG) on Monday following attacks on its facilities, triggering a surge in global gas prices. The attacks, attributed to Iran, targeted facilities in Ras Laffan Industrial City and Mesaieed Industrial City, according to Qatar’s Defence Ministry.
Benchmark Dutch and British wholesale gas prices rose by nearly 50 percent in the immediate aftermath of the announcement, whereas Asian LNG prices jumped almost 39 percent. The disruption comes at a sensitive time for global energy markets, with Europe heavily reliant on LNG imports, particularly from Qatar, as it seeks to reduce its dependence on Russian gas.
QatarEnergy, the world’s largest LNG producer, stated that the cessation of production included LNG and associated products. The company did not specify when production would resume, stating that all damages and losses resulting from the attack would be assessed by relevant authorities.
The attacks on Qatar follow a separate incident in Saudi Arabia, where a fire broke out at the Ras Tanura oil refinery following a drone attack. Saudi Arabia announced a temporary shutdown of some units at the facility. These events collectively contribute to heightened concerns about energy supply security in the region.
According to reports, one drone targeted a water tank belonging to a power plant in Mesaieed, while the other targeted an energy facility in Ras Laffan Industrial City. No human casualties were reported. Approximately 20% of global LNG exports originate in the Persian Gulf, with Qatar being a primary supplier, and much of this trade passes through the Strait of Hormuz.
The Iranian government has not officially claimed responsibility for the attacks on Qatar. However, the timing coincides with ongoing tensions in the region following recent U.S. And Israeli military actions against Iran. Qatar’s Defence Ministry directly attributed the attacks to Iran.
The disruptions in Qatar and Saudi Arabia are occurring as global energy markets remain volatile. The potential for further escalation in the region raises the prospect of a wider energy crisis, impacting both European and Asian markets.
