QatarEnergy announced it is halting plans to increase liquefied natural gas output at the massive Ras Laffan facility. CEO Saad al-Kaabi made the decision following Iran’s attack on the Qatari tanker “Al Raqiyat” last Tuesday—an attack that disabled the ship and forced the crew to abandon it.
2+Following the incident, the company decided to scale back operations at the facility to the bare minimum required for safety, and to reduce the number of vessels expected to dock there in the coming days.
Security Fallout and Impact on Global Gas Markets
The move comes amid a broader security escalation in the region, including attacks on multiple ships near the Strait of Hormuz and exchanges of fire between the U.S. and Iran, which led to an almost complete shutdown of maritime traffic through the straits on Thursday.
2+The delay in expanding output threatens to tighten the global gas market and intensify competition between Europe and Asia for gas supplies heading into winter, with Asian gas prices already 80% higher than pre-war levels.
Qatar, which supplied about a fifth of global LNG consumption last year, had been working to gradually restore production since signing a temporary peace agreement in June, but that process is now on hold. Meanwhile, the company has extended force majeure notices on gas deliveries to customers in Asia and Europe through August and September.
2+History of Damage and Long-Term Recovery
The Ras Laffan facility has suffered prolonged damage since the start of the war, after being largely shut down following an Iranian drone attack in early March. Weeks later, about 17% of the facility’s production capacity was damaged by a missile strike, and according to estimates, repairing the damaged section will take at least three years. As of now, 11 empty LNG tankers are anchored outside the facility, and the company is waiting for tensions to ease before moving to ramp up exports as quickly as possible.