Global Gas Markets Shocked as Qatar Ceases LNG Production

Qatar’s state-owned energy giant QatarEnergy has stopped all liquefied natural gas (LNG) production, shutting down the country’s entire LNG output after Iranian drone strikes hit its major facilities at Ras Laffan and Mesaieed. The shutdown removes roughly 20% of the world’s LNG supply from the market and sends ripples through already volatile global energy markets.

QatarEnergy said in a statement on its website Monday that “due to military attacks on QatarEnergy’s operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City and Mesaieed Industry City… QatarEnergy has ceased production of liquefied natural gas (LNG) and associated products.” No timeline for resuming output was provided.

The military strikes are part of a larger regional escalation following Iranian retaliation in response to ongoing U.S. and Israeli military actions. Attacks on energy infrastructure have also forced shutdowns at Saudi Arabia’s Ras Tanura oil refinery and precautionary suspensions of other Middle East oil and gas output.

Qatar is one of the world’s largest LNG suppliers. Halting its LNG output, which comes from roughly 14 trains and accounts for an estimated one-fifth of global export capacity according to energy market analysis before the conflict, sharply tightens global supply. Analysts warn this disruption could fuel spikes in gas prices across Europe and Asia, which were already climbing amid geopolitical uncertainty.

Natural gas and oil benchmarks spiked on the news; European gas prices jumped sharply, and Brent crude climbed as much as 8–13% in early trade Monday as markets digested the supply shock and broader instability in the Strait of Hormuz.

The Qatari government has not released detailed damage assessments, but the defence ministry confirmed Iranian drones targeted the Ras Laffan facility—a cornerstone of LNG production—and a power plant tank in Mesaieed.

Global energy buyers, including major Asian and European importers locked into long-term contracts with QatarEnergy, now face an unprecedented supply gap that could reverberate through markets and energy security planning.

The situation remains fluid, and QatarEnergy said it would continue to communicate updates to stakeholders as new information becomes available.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com

 

  • Related Posts

    OPEC+ holds November oil production targets steady as supply remains constrained

    (Bloomberg) – Major OPEC+ nations agreed to keep oil production quotas unchanged next month, as conflict in the Middle East continues to shutter swaths of the group’s output.  A sub-group…

    Japan’s JERA Creates Oil Storage Firm to Manage National Reserve Sites

    Japanese energy firm JERA is creating an oil storage company which will exclusively manage the operation of the national petroleum stockpiling bases that JERA currently operates, as the Middle East…

    Have You Seen?

    OPEC+ holds November oil production targets steady as supply remains constrained

    • October 4, 2026
    OPEC+ holds November oil production targets steady as supply remains constrained

    Japan’s JERA Creates Oil Storage Firm to Manage National Reserve Sites

    • October 2, 2026
    Japan’s JERA Creates Oil Storage Firm to Manage National Reserve Sites

    Alaska LNG Hinges on How Much Asian Buyers Will Pay for Energy Security

    • October 2, 2026
    Alaska LNG Hinges on How Much Asian Buyers Will Pay for Energy Security

    WTI Sinks Nearly 4% as EU Weighs Emergency Stockpile Release

    • October 2, 2026
    WTI Sinks Nearly 4% as EU Weighs Emergency Stockpile Release

    Latest Dallas Fed Survey Reveals Theme Among Respondents

    • October 2, 2026
    Latest Dallas Fed Survey Reveals Theme Among Respondents

    What is the near-term feasibility of helium-3 fuel for fusion power?

    • October 2, 2026
    What is the near-term feasibility of helium-3 fuel  for fusion power?

    UN Says Global Fuel Subsidies Could Top $1 Trillion

    • October 2, 2026
    UN Says Global Fuel Subsidies Could Top $1 Trillion

    JERA CEO Warns LNG Prices Have Further to Climb

    • October 2, 2026
    JERA CEO Warns LNG Prices Have Further to Climb

    Scaling up: Blue Star’s next phase in Colorado

    • October 2, 2026
    Scaling up: Blue Star’s next phase in Colorado

    Shougang, Rio Tinto commission carbon capture trial facility at China steel plant

    • October 2, 2026
    Shougang, Rio Tinto commission carbon capture trial facility at China steel plant