Gas prices soar as QatarEnergy halts LNG production after Iran attacks

2026-03-02 - 17:08

QatarEnergy announced it has suspended liquefied natural gas (LNG) production after Iranian drone strikes targeted its facilities, triggering sharp spikes in gas prices across Europe and Asia. In a statement on Monday, the world’s largest LNG producer said it halted output following attacks on its operating sites in Ras Laffan Industrial City and Mesaieed Industrial City. European benchmark gas prices surged nearly 50 percent shortly after the announcement, while Asian LNG benchmarks climbed almost 39 percent. Verified footage from Al Jazeera showed smoke rising from Saudi Arabia’s Ras Tanura oil refinery, one of the world’s largest oil processing facilities. Saudi authorities said the refinery suffered limited damage after a drone-related fire but reported no casualties. Located near Dammam, the Ras Tanura refinery has a capacity of 550,000 barrels per day and is a key pillar of Saudi Arabia’s energy infrastructure. The attacks come amid mounting tensions in the region, with oil tankers accumulating near the Strait of Hormuz — a critical route that carries about 20 percent of the world’s seaborne oil and most of Qatar’s gas exports. Oil prices jumped as much as 13 percent during intraday trading, climbing above $82 per barrel — the highest level since January 2025. Prices had already risen roughly 25 percent earlier in the day before extending gains following QatarEnergy’s production halt. Europe’s benchmark Dutch TTF natural gas contract rose more than 25 percent in morning trading, reaching 39.40 euros per megawatt hour by 11:31 GMT, up 7.44 euros. In Asia, the S&P Global Energy Japan Korea Marker (JKM) stood at $15.068 per million British thermal units, according to Platts data. The strikes are part of escalating retaliation by Iran, which has been targeting Israel and US military assets in the region following large-scale air raids carried out by the United States and Israel. Earlier, Qatar’s Defence Ministry said two drones launched from Iran struck the country. One targeted a water tank at a power plant in Mesaieed, while the other hit a QatarEnergy facility in Ras Laffan. No casualties were reported. Officials said damage assessments are under way and a further statement will be issued once evaluations are complete. Meanwhile, Saudi Arabia’s Defence Ministry, cited by the state-run Saudi Press Agency, said two drones attempted to attack the Ras Tanura refinery on Monday morning. The drones were intercepted, though a small fire broke out as a result. Source: Al Jazeera