Qatar’s state-owned energy giant QatarEnergy announced on Monday that it had suspended liquefied natural gas (LNG) production following Iranian drone attacks on two of its main processing facilities. The disruption affects operations at Ras Laffan Industrial City, the world’s largest LNG complex, and Mesaieed Industrial City, both critical hubs for the Gulf state’s gas production.Qatar’s Defense Ministry reported that one drone attacked a power facility in Ras Laffan, located about 80 kilometers north of Doha, while another targeted a water tank at a power plant in Mesaieed, approximately 40 kilometers south of the capital. No casualties were reported in any of the incidents.
The suspension sparked a sharp rise in European gas markets, with the Dutch TTF benchmark for natural gas jumping almost 45 percent to more than 46 euros ($54) per megawatt-hour. Analysts said the move could significantly affect global LNG prices, given Qatar’s position as one of the world’s top producers, along with the United States, Australia and Russia.Experts emphasized that the decision largely appeared to be a precautionary measure rather than a direct response to the scale of the attacks. The closure 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 maritime oil passes. This has compounded fears of supply disruptions.QatarEnergy and international analysts also noted that the disruption could delay the resumption of normal LNG shipments even after the Strait of Hormuz reopens. The country shares with Iran the huge North Field gas field, which accounts for about 10 percent of the world’s known natural gas reserves.Qatar has 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 also a potential concern for international buyers.