Gas prices jump by 30% again after Qatar halts additional output

QatarEnergy Halts Key Operations at Ras Laffan Facility

QatarEnergy has announced the suspension of aluminium and certain chemical manufacturing at its Ras Laffan site, prompting a sharp reaction in global energy markets.

Natural gas prices soared by over 30% on Tuesday following the expanded shutdown at the world’s largest liquefied natural gas (LNG) export facility.

By midday, European gas prices had climbed to approximately €58 (£50) per megawatt hour. The surge followed QatarEnergy’s decision to halt aluminium and chemical output at Ras Laffan, intensifying concerns about supply stability.

This latest move comes just a day after the same plant ceased LNG production. The Ras Laffan complex is responsible for nearly 20% of global LNG exports, with the UK sourcing around 2% of its LNG from Qatar.

Since the US and Israel’s military action against Iran, gas prices have surged by more than 80%, reflecting mounting market fears over prolonged export interruptions.

Such rapid price escalation has not been observed since Russia’s invasion of Ukraine in 2022, although current gas prices remain below the record highs reached during that period.

Updates on this situation will follow as more information becomes available.