QatarEnergy announced a force majeure on Wednesday, halting liquefied natural gas (LNG) exports from the country’s Ras Laffan industrial city amid escalating Middle East tensions. The legal declaration exempts QatarEnergy from contractual delivery obligations due to extraordinary circumstances beyond its control, primarily caused by disruptions in shipping through the Strait of Hormuz.
The shutdown follows a near-total blockade of shipping in the vital waterway, which has been heavily impacted by the ongoing US-Israel conflict with Iran. Qatar, responsible for approximately 20% of global LNG exports, supplies major markets in Asia—including China, Japan, India, and South Korea—as well as Europe.
Restoring LNG operations could take months. Officials warn that it will be a slow process due to the complexities of restarting the giant facilities. While initial estimates suggested a quick recovery, recent developments indicate a prolonged disruption.
U.S. President Donald Trump initially projected that military operations—codenamed Operation Epic Fury—would last only four to five weeks but later acknowledged that the US has the capacity to sustain the campaign longer if needed. Israeli Prime Minister Benjamin Netanyahu described the military campaign as “quick and decisive,” though he noted it could take some time to achieve objectives, and might not last for years.
The US aims to weaken Iran’s missile and naval capabilities, prevent it from acquiring nuclear weapons, and stop Iran from funding regional militant groups. Past operations, such as the 12-day Operation Midnight Hammer, elicited limited Iranian retaliation. However, Iran has responded more aggressively this time, following the death of Supreme Leader Ayatollah Ali Khamenei, launching a barrage of attacks involving drones and ballistic missiles targeting Israel and US-allied Gulf nations, including the UAE, Saudi Arabia, Kuwait, Bahrain, Qatar, and Oman.
Iran has also declared the Strait of Hormuz closed, warning of potential attacks on vessels, which has severely disrupted oil and gas shipments and forced global shipping routes to be rerouted.
Impact on Qatar’s LNG Industry
Qatar’s Ras Laffan Industrial City is the world’s largest LNG export hub, featuring 14 LNG trains with a combined capacity of approximately 77 million metric tonnes per year (mtpa). The port is equipped with six LNG berths capable of accommodating the world’s largest LNG carriers, such as QMax and QFlex vessels. The plant’s storage tanks hold around 1.88 million cubic meters, with plans underway to expand capacity to handle up to 126 million tonnes annually by 2027.
Currently, the storage tanks can be filled in just four days at full production rates, meaning that export activity halts quickly once ships cannot depart. Restarting operations after a shutdown is a complex process, requiring several weeks to gradually bring the facilities back to full capacity without damaging delicate cryogenic equipment.
Global Market Disruptions
The supply shock has sent shockwaves through global gas markets, with European and Asian prices surging nearly 50%. Meanwhile, U.S. LNG exports, already operating near capacity, have limited ability to compensate for the shortfall, intensifying concerns over energy security amid ongoing regional conflicts.
As the situation unfolds, experts warn that the timeline for Qatar’s LNG exports to resume remains uncertain, with the potential for prolonged disruptions that could influence global energy markets for months to come.
