Qatar state‑run QatarEnergy halts LNG production after Iran drone attacks, sends European gas prices soaring – The Times of India

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 key processing facilities. The halt 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 output.Qatar’s Defence Ministry reported that one drone struck an energy facility in Ras Laffan, located about 80 kilometres north of Doha, while another targeted a water tank at a power plant in Mesaieed, roughly 40 kilometres south of the capital. No casualties were reported in either incident.

The suspension triggered a sharp surge in European gas markets, with the Dutch TTF natural gas benchmark jumping nearly 45 per cent to more than 46 euros ($54) per megawatt-hour. Analysts said the move could significantly impact global LNG prices given Qatar’s position as one of the world’s top producers, alongside the United States, Australia, and Russia.Experts emphasised that the decision appeared 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. This has compounded fears of supply disruptions.QatarEnergy and international analysts also noted that the halt could delay the resumption of normal LNG shipments even after the Strait of Hormuz reopens. The country shares the massive North Field gas reservoir with Iran, which accounts for around 10 per cent of global known natural gas reserves.Qatar has longstanding long-term LNG agreements 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.