West Asia conflict: Energy shock risk rises after QatarEnergy halts LNG production following strikes

State-owned energy giant QatarEnergy on Monday announced that it has halted liquefied natural gas (LNG) production after military strikes targeted its operating facilities at the country’s two major industrial hubs — Ras Laffan Industrial City and Mesaieed Industrial City. 

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In a statement, the company said it had stopped the production of LNG and related products following the attacks. 

“Due to military attacks on QatarEnergy's operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar, QatarEnergy has ceased production of liquefied natural gas (LNG) and associated products,” the company said. 

The firm added that it will continue to monitor the situation and keep shareholders informed as developments unfold. 

The suspension of LNG production comes amid escalating tensions across the Gulf following a widening regional conflict involving Iran. Iran has launched missile and drone strikes targeting multiple locations across the Gulf, including sites in Qatar, the United Arab Emirates and other nearby states, in retaliation for coordinated military actions against Iranian targets. 

The strikes mark a significant escalation in the crisis and have begun to disrupt critical infrastructure in the energy-rich region, which is home to some of the world’s largest oil and natural gas facilities. 

Ras Laffan Industrial City, located north of the capital Doha, is one of the world’s largest LNG production hubs and a cornerstone of Qatar’s global gas exports. Mesaieed Industrial City, south of Doha, hosts major petrochemical and energy processing facilities. 

Any prolonged disruption to LNG output from Qatar — the world’s leading exporter of the fuel — could have significant implications for global energy markets, particularly for major importers in Asia and Europe that depend heavily on Qatari supplies.