Qatar Halts Expansion of Giant Ras Laffan Gas Facility After Iranian Attack

QatarEnergy, the state-owned energy company of Qatar, has suspended plans to expand production at its massive Ras Laffan liquefied natural gas (LNG) facility following an Iranian attack on a Qatari tanker. The attack on the tanker Al Raqeet on Tuesday forced the vessel out of service and led to the evacuation of its crew. In response, QatarEnergy's CEO Saad Al-Kaabi decided to reduce operations at the plant to the minimum necessary for safety and limit the number of ships docking there in the coming days.

This move comes amid escalating regional tensions, including multiple attacks on ships near the Strait of Hormuz and exchanges of fire between the US and Iran, which have nearly halted maritime traffic through the Suez Canal. The delay in increasing LNG output threatens to tighten the global gas market and intensify competition between Europe and Asia for supplies ahead of the winter season. Asian gas prices are already about 80% higher than pre-war levels.

Qatar supplied roughly 20% of global LNG consumption last year and had been gradually restoring production since a temporary peace agreement in June. However, this process is now paused. QatarEnergy has also extended force majeure notices on gas deliveries to customers in Asia and Europe through August and September.

The Ras Laffan facility has suffered prolonged damage since the war began, including a drone strike in early March that shut down most operations and a missile strike weeks later that damaged about 17% of its production capacity. Repairs are expected to take at least three years. Currently, 11 empty LNG tankers are anchored outside the plant as the company awaits a reduction in regional tensions to resume export growth as quickly as possible.