Arabic version: هجمات منشأة الغاز في قطر تؤدي إلى ارتفاع الأسعار العالمية
A major gas facility in Qatar has been hit by missile attacks, causing “extensive damage,” according to QatarEnergy. The attacks on the Ras Laffan industrial hub, a key site for liquefied natural gas (LNG) production, have sent gas prices soaring.
The assaults, attributed to Iranian forces, have disrupted operations at Ras Laffan, which produces about a fifth of the world’s LNG. The facility includes a gas-to-liquids plant and is located 80km (50 miles) north-east of Qatar’s capital Doha, near the world’s largest gas field, shared between Qatar and Iran. Production has been shut down since early March due to the ongoing conflict. According to BBC News, the damage includes extensive impairment to Shell’s Pearl gas-to-liquids facility and several LNG facilities.
In response to the attacks, gas prices surged, briefly reaching a peak of almost 183p per therm before falling back to 154.8p, an 11.3% increase from Wednesday’s level. Analysts are concerned that this escalation may lead to prolonged supply disruptions. Matthieu Favas, a commodities editor at The Economist, noted the significant rise in prices, while energy consultancy Wood Mackenzie indicated that the outlook for the global LNG market has fundamentally changed.
Experts predict that the timeline for recovery from these disruptions may extend beyond earlier expectations, which anticipated a return to pre-conflict supply levels by mid-2026. This situation is expected to impact global gas prices significantly, as the loss of LNG supply cannot be quickly replaced. The head of QatarEnergy mentioned that the attacks have knocked out 17% of its LNG export capacity, with repairs likely taking three to five years.
The UK, which primarily sources its gas from Norway and the US, could also feel the effects of rising gas prices. Even for consumers relying on alternative energy sources, the increase in gas prices will likely influence electricity costs. Experts have advised that the government may need to devise a plan for energy security and to support consumers facing higher prices in the coming months.
