Qatar’s state-owned Qatargas has suspended all liquefied natural gas (LNG) production at its Ras Laffan facility after a series of drone attacks attributed to Iran. The disruption affects 28 million tons per year of LNG capacity, triggering immediate market volatility in global energy markets.
- Qatargas suspended 28 million tons/year of LNG production at Ras Laffan facility after drone attacks on February 29, 2026.
- CL=F rose 3.2% to $89.40 per barrel; NG=F surged 7.8% to $3.85 per million Btu.
- CBOE Volatility Index (^VIX) reached 28.4, indicating heightened market stress.
- Global LNG spot prices rose over 15% in Asia and Europe within 48 hours.
- Repair timelines estimated between 45 to 90 days, depending on assessed infrastructure damage.
- GCC nations initiated emergency defense coordination in response to the attack.
Qatargas, Qatar’s flagship energy producer, has halted operations at its Ras Laffan Industrial City terminal following a coordinated drone assault on February 29, 2026. The attack targeted key infrastructure within the facility, including liquefaction trains and storage units, prompting a full production shutdown to assess damage and ensure safety. The facility normally exports approximately 28 million tons of LNG annually, representing nearly 12% of global LNG trade volume. The suspension has triggered a sharp response in energy markets. U.S. crude oil futures (CL=F) rose 3.2% to $89.40 per barrel, while natural gas futures (NG=F) surged 7.8% to $3.85 per million Btu, reflecting heightened supply anxiety. The CBOE Volatility Index (^VIX) spiked to 28.4, its highest level since late 2023, signaling increased investor uncertainty amid escalating regional tensions. The disruption underscores the vulnerability of critical energy infrastructure to asymmetric threats. Qatargas operates under a joint venture structure with international partners, including ExxonMobil and Shell, which may face immediate operational and financial consequences. Global LNG importers, particularly in Asia and Europe, are now scrambling to secure alternative supply routes, with spot prices for LNG in Japan and northwest Europe jumping over 15% in two days. The incident marks a significant escalation in regional conflict, with Iran denying involvement but regional intelligence sources indicating drone launch sites in western Iran. The event has prompted emergency coordination between Gulf Cooperation Council (GCC) nations and increased defense readiness across the Persian Gulf. Market participants are assessing the potential for prolonged outages, with repair timelines estimated between 45 to 90 days depending on damage severity.