Qatar pauses LNG output revival after tanker attack near Hormuz: report

Qatar paused efforts to rapidly revive production at the world’s largest liquefied natural gas (LNG) facility after an attack on one of its tankers near the Strait of Hormuz raised safety concerns, Bloomberg reported on Thursday.

QatarEnergy officials held a series of meetings after Tuesday’s attack, with CEO Saad Al-Kaabi deciding to halt plans to increase output at the Ras Laffan complex, the report said, citing people familiar with the matter.

Operations at the facility will be kept at minimum levels for safety reasons, while the number of vessels scheduled to dock at the plant in the coming days will be reduced.

The decision marked one of the most significant energy-sector consequences of renewed tensions around Hormuz, after attacks on several ships near the strategic waterway and US strikes on Iran for two consecutive days.

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The Strait of Hormuz is a key route for global energy shipments, including LNG exports from Qatar, one of the world’s largest suppliers of the fuel.

The delay in restoring output at Ras Laffan could tighten the global gas market further as Europe and Asia seek supplies ahead of the winter season.

Asian LNG spot prices are more than 80% above pre-war levels, while European benchmark gas prices rose on Thursday above €50 ($57.1) per megawatt-hour for the first time since the US and Iran reached an interim peace deal last month.

Qatar had been preparing to revive most of its LNG production within two months following the agreement, keeping some production trains at reduced capacity to enable a quicker ramp-up when transit conditions improved.

However, those efforts have now been temporarily paused as Qatar waits for tensions to ease.

The Ras Laffan facility had been largely shut since early March after an Iranian drone attack, while about 17% of the plant’s capacity was damaged in a separate missile strike weeks later. The report said repairs to the damaged section are expected to take at least three years.

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Last week, QatarEnergy extended force majeure notices on LNG supplies to some Asian customers until August, adding uncertainty over the timing of a restart.

The latest disruption came after Qatar said its Al Rekayyat LNG tanker was struck by Iran on Tuesday. The vessel was disabled, and the crew abandoned the ship shortly afterwards.

Two other vessels were also attacked, while maritime traffic through the Strait of Hormuz slowed sharply on Thursday amid the renewed escalation.