Gulf attacks halt Qatar LNG, Saudi refinery, Israeli energy output
DUBAI: Qatar halted liquefied natural gas (LNG) production on Monday as Iran intensified retaliatory strikes across the Gulf following US and Israeli attacks, triggering precautionary shutdowns at key energy facilities across the Middle East.
Qatar's LNG output accounts for about 20% of global supply and is critical to balancing demand in Asian and European markets. The halt came as regional attacks entered a third day, also forcing the suspension of operations at Saudi Arabia's largest domestic oil refinery, most oil production in Iraqi Kurdistan and several Israeli gas fields, disrupting exports to Egypt.
State-owned QatarEnergy was preparing to declare force majeure on LNG shipments after Iranian drone strikes targeted facilities at the Ras Laffan industrial complex, home to the country's massive gas-processing trains. Drones also struck the Mesaieed industrial zone in southern Qatar, which houses petrochemical and manufacturing facilities.
Natural gas prices surged, with Europe's benchmark Dutch TTF front-month contract rising 46%, while oil jumped as much as 13% intraday to above $82 a barrel - the highest since January 2025 - as shipping through the Strait of Hormuz slowed sharply. About one-fifth of global oil supply passes through the vital waterway.
Saudi Aramco's 550,000-barrel-per-day Ras Tanura refinery was partially shut as a precaution after drones were intercepted at the site, with debris causing a limited fire but no injuries, Saudi authorities said. Fuel supplies to domestic markets were not affected.
In Iraqi Kurdistan, producers including DNO, Gulf Keystone Petroleum, Dana Gas and HKN Energy halted output - around 200,000 barrels per day exported via Turkey - as a precaution, though no damage was reported. Offshore Israel, Chevron temporarily shut the Leviathan gas field, while Energean halted production at smaller fields. Chevron said its facilities remained safe.
Explosions were also reported at Iran's Kharg Island, which handles about 90% of the country's crude exports, though the extent of damage was unclear. Iran produces roughly 3.3 million barrels per day of crude, plus 1.3 million barrels per day of condensate and other liquids.
Analysts said the strike on Saudi Arabia's Ras Tanura refinery marked a significant escalation, placing Gulf energy infrastructure directly in the conflict's crosshairs.
Qatar's LNG output accounts for about 20% of global supply and is critical to balancing demand in Asian and European markets. The halt came as regional attacks entered a third day, also forcing the suspension of operations at Saudi Arabia's largest domestic oil refinery, most oil production in Iraqi Kurdistan and several Israeli gas fields, disrupting exports to Egypt.
State-owned QatarEnergy was preparing to declare force majeure on LNG shipments after Iranian drone strikes targeted facilities at the Ras Laffan industrial complex, home to the country's massive gas-processing trains. Drones also struck the Mesaieed industrial zone in southern Qatar, which houses petrochemical and manufacturing facilities.
Natural gas prices surged, with Europe's benchmark Dutch TTF front-month contract rising 46%, while oil jumped as much as 13% intraday to above $82 a barrel - the highest since January 2025 - as shipping through the Strait of Hormuz slowed sharply. About one-fifth of global oil supply passes through the vital waterway.
Saudi Aramco's 550,000-barrel-per-day Ras Tanura refinery was partially shut as a precaution after drones were intercepted at the site, with debris causing a limited fire but no injuries, Saudi authorities said. Fuel supplies to domestic markets were not affected.
In Iraqi Kurdistan, producers including DNO, Gulf Keystone Petroleum, Dana Gas and HKN Energy halted output - around 200,000 barrels per day exported via Turkey - as a precaution, though no damage was reported. Offshore Israel, Chevron temporarily shut the Leviathan gas field, while Energean halted production at smaller fields. Chevron said its facilities remained safe.
Explosions were also reported at Iran's Kharg Island, which handles about 90% of the country's crude exports, though the extent of damage was unclear. Iran produces roughly 3.3 million barrels per day of crude, plus 1.3 million barrels per day of condensate and other liquids.
Analysts said the strike on Saudi Arabia's Ras Tanura refinery marked a significant escalation, placing Gulf energy infrastructure directly in the conflict's crosshairs.
Next Story