Iranian Attack on Qatar LNG Hub Sends European Gas Soaring 35%

Europe’s benchmark natural gas prices jumped by 35% at market open on Thursday, as fears of persistent gas supply disruptions intensified following the Iranian attack on Qatar’s Ras Laffan Industrial City (RLIC), which hosts the world’s biggest LNG liquefaction complex. 

The April 2026 contract of the Dutch TTF Natural Gas Futures opened 35% higher on Thursday, before easing the gain to 24% as of 7:48 a.m. Amsterdam time.  

All the futures prices through the March 2027 futures contracts are now trading above $69 (60 euros) per megawatt-hour (MWh), nearly double compared to just above $37 (32 euros) per MWh before the war in the Middle East started on February 28.  

Qatar had already halted the Ras Laffan LNG complex in the early hours of the war, mostly as a precaution following a drone attack near the site and because of the de facto closed Strait of Hormuz. 

European prices have soared since then as the supply shock of 20% of global LNG flows halted reverberated through markets and prompted Asia to outbid Europe for spot LNG supply. 

With EU gas inventories at their lowest level in years at the end of this winter, Europe will need more supply than in the past few years to fill up reserves ahead of the 2026/2027 winter.  

QatarEnergy confirmed damage from Thursday’s attack, saying that “several of its Liquefied Natural Gas (LNG) facilities were the subject of missile attacks, causing sizeable fires and extensive further damage.” 

Commenting on the attack and its consequences on the gas market, ING commodities strategists Warren Patterson and Ewa Manthey said in a Thursday note that “Damage to the LNG facilities means that the troubles for global gas markets aren’t just about when flows through the Strait of Hormuz resume, but how long repair work at the sites might take.”

“Even if it turns out that the LNG facilities are largely untouched, the market will have to price in a higher risk premium, given the growing threat to energy infrastructure in the region,” they added. 

By Tsvetana Paraskova for Oilprice.com

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