Qatar’s LNG fields are at a standstill due to strikes in the Middle East

Qatar halted its production of liquefied natural gas (LNG) on Monday. While Iran continued to attack Gulf countries in retaliation for Israeli and US attacks against it. Prompting the preventive closure of oil and gas facilities across the Middle East.

Qatari LNG production accounts for approximately 20% of global supply and plays a key role in balancing demand for this fuel in Asian and European markets.

The wave of attacks in the Middle East, which lasted for three days, also led to the suspension of operations at Saudi Arabia’s largest oil refinery following a drone attack. Most of the oil production in Iraqi Kurdistan, and several Israeli gas fields, slowing exports to Egypt.

State-owned company QatarEnergy, with 82% of its customers in Asia, was preparing to declare force majeure on its LNG shipments following Iranian drone attacks on facilities at the extensive Ras Laffan complex. The complex houses Qatar’s gas trains: huge processing units that supercool natural gas for export by ship.

Drones also attacked the Mesaieed industrial zone in southern Qatar, far from the gas fields but home to petrochemical and manufacturing facilities.

Natural gas prices soared, with the European benchmark, the Dutch contract expiring next month at the TTF hub, rising 46% at 14:26 GMT.

Part of an energy complex on Saudi Arabia’s Gulf coast, the 550,000 barrels per day (bpd) Ras Tanura refinery. Operated by state oil corporation Saudi Aramco was shut down as a precaution, according to an industry source. It also functions as a vital export terminal for Saudi petroleum.