Global gas crisis: Qatar completely halts LNG production
4 March 20:16
Qatar has declared force majeure and completely halted LNG production due to attacks by Iran, according to Reuters, as reported by [Komersant]
The state energy company QatarEnergy has officially declared force majeure and a complete halt to liquefied natural gas (LNG) production following Iranian attacks. It is expected that it will take at least a month to restore normal operations at the facilities. These are only initial estimates.
Reuters sources specify that after the plant resumes operations, it will take at least two weeks to reach full capacity.
The shutdown of the world’s largest LNG exporter caused immediate panic in energy markets.
“Gas prices in Europe rose 52 percent after Iran’s strike on Ras Laffan, the biggest jump since Russia’s invasion of Ukraine in 2022,” The National News reports.
A critical blow to India’s economy
India, which imports about 40% of its LNG from Qatar, has been hit hardest by the Qatari force majeure. According to The Times of India, India’s largest importer, Petronet LNG, was also forced to declare force majeure to its domestic partners following Qatar’s move.
This has already led to an emergency reduction of 10-40% in gas supplies to Indian industrial enterprises. Against the backdrop of this news, the shares of India’s key gas distribution companies plummeted by almost 12%. Spot prices for liquefied gas on the Asian market also skyrocketed to $25 per million British thermal units.
Attacks on QatarEnergy
On March 2, Iranian drones struck QatarEnergy facilities in Ras Laffan and Umm Said, leading to a complete halt in liquefied gas production.
According to the Qatari Ministry of Defense, each facility was hit by one drone.
Due to the military threat and risk to infrastructure, the management of the Qatari energy giant officially announced the suspension of LNG production and all related products.
Incidentally, on March 2, Bloomberg reported that Qatar was running out of missiles for its air defense systems, with only four days’ worth remaining at the current rate of consumption.
Against this backdrop, the authorities of Qatar and the UAE are trying to convince US President Donald Trump not to engage in a protracted war with Iran, as the Persian Gulf countries are suffering huge losses.
