Following Iranian drone strikes on energy facilities in Qatar on Monday, QatarEnergy announced it would cease LNG production.

QatarEnergy has ceased production of liquefied natural gas (LNG) and related products following military attacks on its facilities.

In a statement posted on X, QatarEnergy said the shutdown was a direct response to the attacks, which it said targeted its operational complexes in Ras Laffan and Mesaieed, two of Qatar’s most critical industrial hubs for energy production and export. 

The company did not provide a timeline for when production might resume, but emphasised it “values its relationships with all of its stakeholders and will continue to communicate the latest available information.”

Qatar’s Ministry of Defence had previously announced that Iranian drones targeted a water tank in Mesaieed and a QatarEnergy facility in Ras Laffan Industrial City on Monday. 

No casualties were reported, and authorities are assessing material losses and damages. 

The suspension affects one of the world’s largest LNG producers at a moment of extreme volatility in the Middle East.

Global markets have responded, with prices for natural gas and crude rising sharply amid concerns over supply reliability and broader economic effects.

The production stoppage has already had a dramatic impact on European energy markets. 

Benchmark natural gas prices in Europe jumped nearly 50%, trading above €46 (~$53.84) per megawatt-hour, as traders reacted to the sudden loss of supply from one of the world’s largest LNG exporters. 

European gas prices had already been climbing on fears the regional conflict could disrupt flows through the Strait of Hormuz. The QatarEnergy shutdown has intensified those concerns and pushed markets sharply higher.

The Ras Laffan and Mesaieed industrial complexes account for approximately one-fifth of the world’s LNG production.