Qatar Halts LNG Production Amid Middle‑East Oil and Gas Facility Closures
Date: Monday, 2 March 2026
Overview
Qatar announced on Monday that it is suspending its liquefied natural gas (LNG) production as part of preventive shutdowns of oil and gas installations across the Middle East. The move follows recent strikes against Iran and Tehran’s retaliatory actions.
- Qatar’s LNG output: ~20 % of global supply, making the country the world’s second‑largest LNG exporter after the United States.
- Key markets: Asia (≈ 82 % of QatarEnergy’s customers) and Europe.
Regional Escalation
The attacks entered a third consecutive day, causing:
| Incident | Location | Impact |
|---|---|---|
| Drone strike | Saudi Arabia’s largest refinery (Ras Tanura) | Facility shut down as a precaution |
| Drone attacks | Iraqi Kurdistan oil fields & several major gas fields | Majority of production halted; exports to Egypt affected |
| Drone attacks | Ras Laffan industrial complex (Qatar) | QatarEnergy preparing to declare force majeure on LNG cargoes |
| Drone attacks | Mesaieed industrial zone (southern Qatar) | Petrochemical and industrial plants targeted (far from gas fields) |
| Explosions | Kharg Island (Iran) | About 90 % of Iran’s crude oil exports pass here; damage extent unknown |
QatarEnergy’s Response
- Force majeure: The state‑owned company plans to invoke force majeure on its LNG shipments after Iranian drones struck the Ras Laffan complex, which houses the gas‑liquefaction units where natural gas is cooled to extremely low temperatures for maritime export.
- Customer base: Asian buyers account for roughly 82 % of QatarEnergy’s LNG sales.
Market Reaction
- Natural gas prices: European benchmark surged 46 % by 14:26 GMT, reflecting tight supply.
- Crude oil prices: Rose up to $82 per barrel, a 13 % intraday gain and the highest level since January 2025. The spike comes amid near‑paralysis of maritime traffic through the Strait of Hormuz, a chokepoint that carries about 20 % of global oil shipments.
Other Facility Closures
- Ras Tanura refinery (Saudi Aramco): 550,000 bpd capacity, temporarily closed as a safety measure. The refinery is a cornerstone of Saudi crude exports. Saudi Aramco has not yet commented.
- Iraqi Kurdistan: Companies such as DNO, Gulf Keystone Petroleum, Dana Gas, and HKN Energy have halted production in their fields pre‑emptively, reporting no damage.
- Leviathan gas field (Israel): Israeli authorities ordered Chevron to temporarily shut the giant field, which is slated to increase capacity to ≈ 21 billion m³ / year under a $35 billion export deal with Egypt. Chevron says its regional assets remain secure.
- Energean: Suspended operations of a production vessel serving smaller gas fields.
Iran’s Situation
- Explosions on Kharg Island: Heard on Saturday; the island handles roughly 90 % of Iran’s crude oil exports. Damage assessments are pending.
- Production figures: Iran, the OPEC’s third‑largest producer, supplies about 4.5 % of global oil, producing ≈ 3.3 million bpd plus 1.3 million bpd of condensates and other liquids.
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