Qatar halts LNG production, recovery to take weeks - Reuters
Kyiv • UNN
Qatar has declared force majeure on gas exports due to the US-Israeli war against Iran. Restoring normal production volumes could take at least a month, leading to shortages in global markets.
Qatar on Wednesday declared force majeure on gas exports due to the US-Israeli war against Iran, with sources reporting that it could take at least a month to return to normal production volumes. This was reported by Reuters, writes UNN.
This means that global gas markets will face a shortage for several weeks, even in the unlikely event that the conflict ends today, as Qatar supplies 20% of the world's liquefied natural gas (LNG).
State energy company Qatar Energy (QE), which suspended gas production this week, will completely stop its liquefaction on Wednesday, two sources familiar with the situation said. They asked not to be named because they are not authorized to speak to the media.
According to initial estimates for the region, QE will not resume operations at the plant for at least two weeks. After a decision is made to restart, another two weeks will be needed to convert the gas into supercooled liquid fuel and reach full capacity, the sources added. The company did not respond to a request for comment.
Qatar provides about 20% of the world's LNG exports, which pass through the Strait of Hormuz, where shipping has virtually stopped due to the US and Israel's war against Iran and Iranian retaliatory strikes.
Qatar supplies gas to Europe and predominantly Asian markets: more than 80% of the company's customers are in China, Japan, India, South Korea, Pakistan, and other countries in the region.
Force majeure is a contract clause that exempts parties from liability if the failure to fulfill supply obligations occurred due to circumstances beyond their control.
QE has already begun contacting some customers in Asia and Europe, but has not yet said how long the shutdown will last, Reuters sources said.
The production halt has intensified competition between the Atlantic and Pacific basins for LNG cargoes, driving up gas prices in Europe and Asia, as well as LNG shipping rates to multi-year highs.
How shutdown and restart work
The reduction in shipping in the Strait of Hormuz has made it impossible to export cargoes from Qatar, so the gas liquefaction process — which converts it to a liquid state by cooling it to approximately -162 degrees Celsius — cannot continue.
Although QE has significant storage capacity at the Ras Laffan plant — about 760,000 cubic meters — this buffer is limited in the context of continuous production of such a scale. At full load, the tanks fill up in just 1.6 days, said Mehdi Touil, a leading LNG specialist and shareholder of Calypso Commodities, which develops AI solutions for LNG.
The shutdown process is carried out gradually: first, production is reduced to a minimum, gas supply is stopped, and pressure in upstream facilities is finally reduced to protect the equipment.
For a restart, cooling is the most critical — it is performed slowly to avoid thermal shock. All lines (trains) cannot be started simultaneously; they must be turned on sequentially, Touil added.
Gas prices in Europe surged amid Qatar LNG plant shutdown03.03.26, 12:02 • 25945 views