Gas crisis looms: Qatar stops LNG production after attack on mega complex

Qatar has halted production of liquefied natural gas after military attacks on the Ras Laffan complex, the world’s largest LNG hub. State-owned company QatarEnergy confirms that its installations have been hit by drones.

The attack hits a crucial link in the global energy supply and could have direct consequences for gas prices in Europe and Asia.

Drone attacks on the heart of the LNG industry

A water tank at a power plant in Ras Laffan was hit by a drone, according to the Qatari Defense Ministry. A second drone struck another energy installation within the same complex.

QatarEnergy said in a statement that production of liquefied natural gas, better known as LNG, has been halted as a precaution. Ras Laffan is considered the beating heart of Qatari gas exports and is essential for the supply of Europe, among others, which has been highly dependent on LNG supplies from the Middle East since the energy crisis.

No details have yet been released about any damage or casualties.

Impact on global energy prices

Qatar is one of the largest LNG exporters in the world. A prolonged production stop could put further pressure on the already tense energy markets. Europe in particular, which is importing more LNG after the loss of Russian pipeline gas, could quickly feel the consequences.

This could become a major problem for the Netherlands. The gas storage facilities are currently only about 10 percent full. This means that there is little buffer if the supply remains disrupted for longer. In such a scenario, energy prices could quickly rise further and Europe’s vulnerability would once again become painfully clear.

It is still unclear how long production in Ras Laffan will be halted. QatarEnergy says it is closely monitoring the situation and working with security services to ensure the safety of the complex.