Gas Prices In Europe Surge Nearly 50% After Qatar, Producer Of 20% Of Global LNG, Halts Output

Last Updated:March 02, 2026, 18:59 IST

European gas prices jumped after the suspension at Ras Laffan and Mesaieed, key nodes in Qatar’s LNG export network.

QatarEnergy said on Monday it has halted liquefied natural gas (LNG) production after Iranian attacks targeted facilities at two of its key gas processing hubs, a move that sent shockwaves through global energy markets.

The state-run firm said operations were suspended at its Ras Laffan Industrial City and Mesaieed Industrial City sites following what it described as military strikes on its operating infrastructure.

In recent years, Qatar has signed long-term LNG supply agreements with major global buyers including Total, Shell, India’s Petronet, Sinopec and Eni, signalling the potential ripple effects for global and Asian energy markets.

Qatar’s defence ministry earlier said an Iranian drone targeted an energy facility at Ras Laffan, the company’s main onshore gas processing complex about 80 km north of Doha. Another drone struck a water tank at a power plant in Mesaieed, roughly 40 km south of the capital, also a critical node in the country’s gas production chain.

No casualties were reported, officials said, but the suspension of output has raised concerns over supply disruptions from one of the world’s largest LNG exporters.

European gas prices surged sharply after the announcement, according to Belga news agency, reflecting mounting market anxiety amid escalating regional tensions.

Benchmark prices on the Dutch futures market opened about 25 per cent higher on Monday — the biggest single-day jump since August 2023 — and remained more than 20 per cent up during trading, pushing the cost of a megawatt-hour above €38. After Qatar confirmed the production halt, gains extended further, taking the overall rise to nearly 40 per cent.

Qatar is among the world’s top LNG producers, alongside the United States, Australia and Russia, and shares the planet’s largest natural gas reservoir with Iran. The country’s North Field alone holds roughly 10 per cent of the world’s known gas reserves.

News world Gas Prices In Europe Surge Nearly 50% After Qatar, Producer Of 20% Of Global LNG, Halts Output

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