Qatar Halts LNG Production, Declares Force Majeure On Exports After Drone Attack

Qatar has suspended liquefied natural gas (LNG) production and declared force majeure on exports after a drone attack targeted key energy infrastructure in the country.

The disruption forced the country’s main liquefaction facilities at Ras Laffan Industrial City to shut down.

Industry sources said QatarEnergy will fully halt gas liquefaction on Wednesday. They added that it may take at least a month for production and exports to return to normal levels.

QatarEnergy stopped producing LNG earlier this week after the attack and informed customers that it might not be able to meet contractual deliveries.

Two sources familiar with the matter said the liquefaction units at Ras Laffan will be completely shut down on Wednesday. Initial estimates suggest the facilities will remain offline for at least two weeks before any restart begins.

Even after restarting, it could take another two weeks for the liquefaction trains to reach full capacity.

QatarEnergy has not responded to requests for comment about the shutdown timeline.

Following the production halt, the state-owned company declared force majeure on LNG shipments. This clause allows suppliers to suspend delivery obligations when events beyond their control disrupt operations.

QatarEnergy said it had informed affected buyers that deliveries of LNG and related products may not be guaranteed. The company added that it remains in contact with customers while assessing the situation and working to restore operations.

The shutdown also comes as shipping activity in the Strait of Hormuz has slowed due to rising tensions linked to the U.S.-Israeli conflict with Iran.

All of Qatar’s LNG exports pass through this key waterway, which connects Gulf producers with global markets. The disruption has already delayed several LNG cargoes scheduled to leave Qatar.

LNG production involves cooling natural gas to about -162°C to turn it into liquid form for transport. Export shipments cannot depart while the liquefaction process remains halted.

QatarEnergy has large storage tanks at Ras Laffan with a capacity of about 760,000 cubic metres. However, analysts say these tanks can support production only for a short time. At full output rates, they could be filled in around 1.6 days.

Qatar is the world’s largest LNG exporter and supplies about 20% of global liquefied natural gas. The country exports more than 75 million tonnes per year, with most cargoes shipped to Asia and Europe.

More than 80% of its customers are in Asia, including China, Japan, India, South Korea and Pakistan. Europe has also increased its LNG imports from Qatar after reducing reliance on Russian pipeline gas following the Ukraine war.

Even a short disruption to Qatari exports can impact global gas supply.

Energy traders said uncertainty about the shutdown has already raised spot LNG prices and tanker freight rates.

Analysts said buyers in Europe and Asia are now looking for alternative cargoes from other suppliers, including the United States and Australia.

If the shutdown lasts only a few weeks, markets may manage the impact using existing inventories and redirected shipments. However, a longer disruption could tighten global supply and increase price volatility.

Energy companies and shipping operators are monitoring the situation closely as Qatar assesses the damage and prepares to restart its LNG facilities.

References: Reuters, gulfnews