Qatar cuts LNG ramp-up plans after tanker strike

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Qatar pauses LNG

Highlights

Qatar paused its Ras Laffan LNG ramp-up after a tanker attack near Hormuz.
Operations will remain at minimum levels for safety.
Qatar supplied about 20% of global LNG last year.
European gas prices topped €50 per megawatt-hour.

QatarEnergy officials held emergency discussions after the Al Rekayyat LNG tanker was struck Tuesday, with Chief Executive Saad Al-Kaabi deciding to halt plans to raise production for now, Bloomberg reported. Operations at Ras Laffan will be kept at minimum levels for safety reasons, and fewer vessels are expected to dock at the plant in the coming days.

Ras Laffan restart is delayed

The pause marks a setback for Qatar’s effort to bring LNG exports back after months of disruption. Since the interim U.S.-Iran agreement last month, Qatar had been preparing to restore much of its LNG production within two months, keeping some production trains at reduced capacity so they could ramp up quickly once Hormuz appeared safe.

That plan is now on hold. Eleven empty LNG vessels are currently waiting outside Ras Laffan, according to ship-tracking data cited in the report. Qatar had also increased loadings and brought empty tankers back toward the plant, signs that it was preparing for a faster return to normal exports.

Ras Laffan has been under pressure since early March, when the facility was largely shut after an Iranian drone attack. A later missile strike damaged about 17% of production capacity, with repairs expected to take at least three years.

Gas prices react to supply risk

The renewed caution comes at a difficult moment for gas buyers. Qatar supplied about one-fifth of global LNG last year, making any delay in its restart important for both Asia and Europe.

Asian spot LNG prices are already more than 80% above pre-war levels. In Europe, benchmark gas prices climbed above €50 per megawatt-hour Thursday for the first time since the U.S. and Iran reached their interim peace agreement last month.

The attack on the Al Rekayyat was the first known strike on a Qatari LNG tanker since the war began in late February. Two other vessels were also attacked this week, while traffic through Hormuz slowed sharply as the U.S. and Iran exchanged strikes.

Winter supply pressure builds

The delay matters because LNG buyers are entering the seasonal restocking period before winter. If Qatar cannot raise exports soon, Europe and Asia may have to compete harder for flexible cargoes from other suppliers.

The immediate risk is not only lost output but also confidence. Shipowners, insurers, and buyers need evidence that Hormuz is safe before normal flows can resume. Until then, the global LNG market remains exposed to sharper price swings, tighter cargo availability, and a longer recovery from the Middle East conflict.

We have previously highlighted that IEA sees the first global gas demand drop since 2022.

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