QatarEnergy (QE) has declared force majeure and announced a complete shutdown of key liquefied natural gas (LNG) export facilities, placing nearly one-fifth of global LNG supply at risk if the disruption continues.
Two sources familiar with the matter told Reuters that the state-owned energy giant began winding down operations earlier this week and is expected to fully halt gas liquefaction on Wednesday.
The suspension primarily affects exports from the vast Ras Laffan industrial complex, Qatar’s main LNG production and export hub. All of the country’s LNG shipments pass through the Strait of Hormuz, a strategic maritime corridor that has experienced severe disruptions amid escalating regional conflict.
Restart Could Take Weeks
According to sources, QatarEnergy will require at least two weeks to restart liquefaction operations following the shutdown, with a further two weeks needed to return output to full capacity. Industry experts note that LNG plants must gradually reduce feed-gas flows before shutdown to protect critical equipment. Restarting operations involves carefully staged cooling procedures to prevent thermal stress and damage.
Qatar accounts for approximately 20 percent of global LNG supply, making it one of the world’s most significant exporters. The majority of its cargoes are destined for Asia and Europe, with China, Japan, India, South Korea and Pakistan among its largest customers.
Any prolonged outage is therefore expected to tighten already volatile global gas markets, potentially pushing up prices in key importing regions.
Strait of Hormuz Disruptions
The shutdown follows a sharp decline in maritime activity through the Strait of Hormuz during the ongoing US-Israeli military campaign against Iran and Tehran’s retaliatory strikes. Heightened security risks have made it increasingly difficult for cargo vessels to transit the strait safely.
Shipping insurers have reportedly raised premiums to record levels, while some brokers have withdrawn coverage for voyages through the waterway altogether, further complicating export logistics.
The Strait of Hormuz is a critical chokepoint for global energy supplies, handling not only Qatari LNG but also a significant portion of the world’s crude oil exports.
Wider Regional Impact
Energy market disruptions are not limited to Qatar’s gas sector.
Iraq has suspended crude exports of roughly 200,000 barrels per day from the semi-autonomous Kurdistan region via the Kirkuk–Ceyhan pipeline, removing additional supply from global markets.
Meanwhile, Saudi Arabia’s state oil company, Saudi Aramco, has halted operations at the Ras Tanura refinery — the world’s largest oil refining complex — following a drone strike on 2 March that triggered a fire.
The combined impact of these events has heightened concerns over energy security and price volatility, with analysts warning that prolonged instability in the Gulf could have far-reaching consequences for global supply chains, inflation and economic growth.