Qatar Energy Company announced today that it will suspend production of liquefied natural gas and related products due to military attacks targeting its facilities in Ras Laffan and Mesaieed.
“Qatar Energy values its relationships with all stakeholders and will continue to communicate based on the information available,” the German news agency said.
Earlier, Qatar’s Ministry of Defense reported that two Iranian drones attacked a water tank at the Mesaieed power plant and a Qatar Energy Company facility in Ras Laffan.
rising expectations
It is worth noting that Goldman Sachs analysts today said that natural gas prices in Europe could more than double if shipping through the Strait of Hormuz is halted for a month.
Analysts at the bank said gasoline prices in Europe and Asia did not adequately factor in risks related to Iran.
The bank explained that suspending shipments for a month could cause gas prices in Europe to rise and spot liquefied natural gas prices in Asia to rise by up to 130%, reaching around $25 per million British thermal units.
interruption of supply
Natural gas prices in Europe rose markedly as concerns grew that escalating violence in the Middle East could cause major disruptions to global energy supplies.
Bloomberg News reported today that standard futures contracts soared as much as 25%, marking the biggest increase since August 2023, after oil tanker movement through the Strait of Hormuz came to a near-total halt earlier this week.
It’s worth noting that this narrow waterway is a major energy transport route, transporting about a fifth of the world’s liquefied natural gas exports, and that oil prices have also increased significantly.
Qatar Energy today announced the suspension of liquefied natural gas production and related products due to military attacks targeting its facilities in Ras Laffan and Mesaieed.
“Qatar Energy values its relationships with all stakeholders and will keep them informed of available information,” the German news agency reported in a statement from the company.
Earlier, Qatar’s Ministry of Defense reported that two Iranian drones attacked a water storage tank at the Mesaieed power plant and a Qatar Energy facility in Ras Laffan.
Expected increase
It is worth noting that Goldman Sachs analysts today said that natural gas prices in Europe could more than double if shipping through the Strait of Hormuz is halted for a month.
Analysts at the bank said gas prices in Europe and Asia did not adequately factor in risks related to Iran.
The bank said a month-long transport suspension would lead to higher gas prices in Europe, and spot liquefied natural gas prices in Asia could rise by as much as 130%, reaching around $25 per million British thermal units.
supply disruption
European natural gas prices rose sharply as concerns grew that escalating violence in the Middle East would cause major disruptions to global energy supplies.
Bloomberg News reported today that benchmark futures prices rose as much as 25%, the biggest gain since August 2023, following the near-total suspension of oil tanker traffic through the Strait of Hormuz earlier this week.
This narrow waterway is a major energy transport route, transporting about one-fifth of the world’s liquefied natural gas exports, and it is notable that oil prices have also increased significantly.
