A major gas facility in Qatar has been hit by missile strikes, causing extensive damage and disrupting global energy markets, according to QatarEnergy.
The attack targeted Ras Laffan Industrial City, the country’s main liquefied natural gas (LNG) production hub, following escalating regional tensions involving Iran and Israel.
Ras Laffan Plays A Critical Role In Global Energy Supply
Ras Laffan Industrial City produces roughly one-fifth of the world’s LNG supply, making it one of the most important energy sites globally.
Located about 80km northeast of Doha, the hub includes LNG processing plants, storage facilities, a gas-to-liquids plant, and an oil refinery.
It sits near the massive North Dome gas field, which Qatar shares with Iran, where it is known as South Pars.
Major international firms including ExxonMobil, Chevron, and Shell operate within the complex.
Damage Cuts Export Capacity And Revenue
QatarEnergy said the missile strikes reduced the country’s LNG export capacity by 17%, with estimated annual revenue losses of around $20 billion.
The company confirmed two separate strikes, including one that caused extensive damage to Shell’s Pearl gas-to-liquids facility and another that triggered fires and further damage across LNG infrastructure.
Production at the site has been shut down since early March, shortly after the conflict began.
Officials said it could take up to five years to fully repair the facilities, raising concerns about prolonged supply disruptions.
Gas Prices Surge Across Global Markets
Global gas prices rose sharply following the attack.
In the UK, prices briefly reached nearly 183p per therm before settling at 154.8p, representing an 11.3% increase in a single day.
European gas prices also climbed by more than 10%.
Analysts said the price jump reflects growing fears that supply disruptions may last longer than previously expected.
Analysts Warn Of Long-Term Market Impact
Wood Mackenzie said the attacks could fundamentally reshape the global LNG market outlook.
Kristy Kramer, head of LNG strategy at the firm, said earlier expectations of a short disruption now appear unlikely.
Nick Butler, former strategy head at BP, said reduced supply would inevitably push prices higher due to limited short-term alternatives.
Wider Impact On Energy And Consumers
Although the UK imports most of its gas from Norway and the United States, LNG remains a key component of the energy mix.
Because gas often sets wholesale electricity prices, increases in gas costs can translate into higher energy bills for consumers.
Experts warn that governments may need to intervene to manage rising costs and ensure energy security if disruptions persist.
Qatar’s energy minister, Saad Sherida Al-Kaabi, described the strikes as attacks not only on Qatar but on global energy stability.
The situation continues to evolve, with markets closely monitoring further developments in the region.
Featured image credits: Flickr
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