Qatar has suspended plans to quickly resume production at the Ras Laffan complex, the world’s largest liquefied natural gas (LNG) facility, following an attack on a tanker in the Strait of Hormuz, according to Bloomberg. The decision threatens to tighten the global gas market further, intensifying competition between Asia and Europe for winter supplies.
Representatives of QatarEnergy held a series of meetings after Tuesday’s attack, and chief executive officer Saad Al-Kaabi decided to withdraw the plans for production increase at the Ras Laffan complex, Bloomberg reported. Operations will be limited to a minimum, and the number of vessels scheduled to dock at the plant in the coming days will be reduced.
Earlier this year, Qatar aimed to restore most of its LNG production within two months after a temporary peace deal between the U.S. and Iran was signed. However, the new security concerns have forced a reversal.
Global gas market under pressure
The delay in restarting full production at Ras Laffan risks further tightening an already strained global gas market. Asian spot LNG prices are more than 80% higher than before the war, highlighting anxiety over Qatar’s return. Qatar supplied roughly one-fifth of the world’s LNG last year.
European benchmark gas prices rose above 50 euros per megawatt-hour on Thursday for the first time since the U.S.-Iran ceasefire agreement. – The market is extremely sensitive to any disruption in flows from the Middle East – said an energy analyst quoted by Bloomberg.
Waiting for a safe passage
Some production lines at Ras Laffan were operating at reduced capacity, ready to ramp up quickly when conditions allowed. According to data from vessel-tracking applications, eleven empty LNG tankers are currently waiting near Ras Laffan. QatarEnergy continues to aim for the fastest possible increase in exports once the Strait of Hormuz is deemed safe.
– We are doing everything to resume loading while ensuring the safety of our crews and facilities – added a source close to the company. The company has increased loading and recalled empty tankers.
The situation highlights the fragility of global energy supplies and the strategic importance of the Strait of Hormuz, through which about a fifth of the world’s LNG passes.
Źródło: wnp.pl/energia, Fot. Shutterstock
