QatarEnergy has suspended production of liquefied natural gas (LNG) following drone attacks on its facilities in Ras Laffan Industrial City and Mesaieed Industrial City, the state-owned energy giant said on Monday.
“Due to military attacks on QatarEnergy's operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar, QatarEnergy has ceased production of liquefied natural gas (LNG) and associated products,” the Peninsula Qatar reported, citing a company statement.
The company did not provide a timeline for when the output might resume, but said it “values its relationships with all of its stakeholders and will continue to communicate the latest available information.”
The development comes amid escalating tensions in the Middle East, with oil prices already climbing as the conflict widens.
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According to a statement by Qatar's Ministry of Defense, the country was targeted by two drones launched from the Republic of Iran.
In a post on X, the ministry said, “One drone targeted a water tank belonging to a power plant in Mesaieed, and the other targeted an energy facility in Ras Laffan Industrial City, belonging to QatarEnergy, without reporting any human casualties.”
Earlier, QatarEnergy confirmed that a drone had struck a water tank at a power plant within the complex and another energy facility in Ras Laffan.
Following the development, Dutch TTF natural gas contract, seen as the European natural gas benchmark, jumped 45% to more than 46 euros.
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The Associated Press reported that QatarEnergy's decision to halt LNG production could significantly disrupt global energy markets, given that Qatar is among the world's largest LNG exporters. The state-owned firm attributed the suspension to the ongoing war in the region.
With one of the world's top LNG suppliers temporarily off the market, energy traders are closely watching for further developments and potential supply shocks.
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