Natural gas prices jump as Qatar says it is shutting down production after Iranian strikes
· Business Insider
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- On Monday, QatarEnergy said it ceased production at one of its energy facilities.
- Production was paused "due to military attacks" on some of the company's operating facilities, QatarEnergy said.
- Natural gas prices jumped on Monday, as did other energy commodities, including crude oil.
Qatar's state-owned energy company has halted production of liquefied natural gas, LNG, after Iranian drone attacks damaged one of its production plants.
"Due to military attacks on QatarEnergy's operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar, QatarEnergy has ceased production of liquefied natural gas (LNG) and associated products," QatarEnergy said in a statement on its website.
Natural gas prices surged on Monday, with European futures for the commodity rising almost 50% soon after the news.
The most widely tracked benchmark for natural gas futures rose more than 6%, mirroring similar gains in other energy commodities. Brent crude oil, the international benchmark, was up 8% on the day.
Iran launched missile strikes targeting at least six countries in retaliation for the Saturday morning attack by the US and Israel.
LNG is natural gas that has been cooled to about -260°F, turning it into a liquid, making it much easier and cheaper to store and transport over long distances.
Most of the North Field — one of the world's largest natural gas reserves — lies in Qatari waters, helping make the Gulf state a leading global LNG producer.
Its top customers include China, Japan, South Korea, and India, as well as European countries such as Belgium, Italy, and the UK.
Ras Laffan Industrial City, one of the facilities impacted by military attacks, sits on the coast near the North Field.
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