Qatar Pauses Ras Laffan LNG Output Increase After Tanker Attack

Qatar has paused efforts to rapidly increase production at the world’s largest liquefied natural gas facility after an attack on one of its tankers in the Strait of Hormuz raised fresh concerns over the safety of the crucial shipping route. The decision comes amid heightened regional tensions following attacks on several vessels near Hormuz and consecutive days of US strikes on Iran.

QatarEnergy officials reportedly held a series of meetings after Tuesday’s tanker attack, with Chief Executive Officer Saad Al-Kaabi deciding to halt plans to increase output at the Ras Laffan complex. Operations are expected to remain at minimum levels for safety reasons, while fewer vessels will be scheduled to dock at the facility in the coming days. QatarEnergy has not publicly commented on the reported decision.

The delay in increasing production could further tighten the global gas market and intensify competition between Asia and Europe for available supplies ahead of the coming winter. Asian spot prices for LNG are already more than 80% above pre-war levels, reflecting concerns over Qatar’s ability to restore exports. The country supplied about one-fifth of the world’s LNG last year and remains the second-largest exporter globally.

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Following an interim peace agreement between the United States and Iran in June, Qatar had planned to restore most of its LNG production within two months. Some production trains at Ras Laffan had been operating at reduced capacity to allow for a rapid increase when conditions improved. Qatar had also increased loadings and brought empty tankers back to the area, with 11 empty LNG vessels reportedly waiting outside the facility.

Ras Laffan has been operating under severe constraints since early March following an Iranian drone attack, while a separate missile strike later damaged about 17% of the facility’s production capacity. Repairs to the damaged section are expected to take at least three years. QatarEnergy has also extended force majeure notices affecting some Asian customers into August, while restrictions on supplies to Italian utility Edison have reportedly been extended until early September.

Concerns intensified after Qatar said its Al Rekayyat LNG tanker was struck by Iran on Tuesday, leaving the vessel disabled and forcing its crew to abandon the ship. Two other vessels were also attacked as regional tensions escalated, while maritime traffic through the Strait of Hormuz slowed to near standstill on Thursday. Qatar is now expected to wait for security conditions to improve before resuming efforts to rapidly increase LNG exports.

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