Doha: Qatar has suspended the liquefaction of natural gas and declared force majeure on its LNG exports following missile and drone attacks on key energy facilities, escalating concerns over global energy supply.
The disruption comes amid Iran’s ongoing tensions with the United States and Israel and coincides with tanker traffic problems in the Strait of Hormuz, a vital route handling about 20 percent of the world’s LNG trade.
Shutdown of Major LNG Facilities
State-owned QatarEnergy halted operations at Ras Laffan Industrial City—the world’s largest LNG export hub—and Mesaieed Industrial City on March 4.
The liquefaction process, which cools natural gas to around -162°C to convert it into LNG, is critical for storage and international transport. The shutdown effectively blocks Qatar, one of the world’s top LNG producers, from fulfilling most of its export contracts.
QatarEnergy has formally notified buyers that deliveries cannot continue due to circumstances beyond its control. By invoking force majeure, the company is legally excused from fulfilling contracts without facing penalties.
The clause is commonly used in energy markets during wars, natural disasters, or other unforeseen crises.
QatarEnergy declares Force Majeure
Further to the announcement by QatarEnergy to stop production of liquefied natural gas (LNG) and associated products, QatarEnergy has declared Force Majeure to its affected buyers.
QatarEnergy values its relationships with all of its…
— QatarEnergy (@qatarenergy) March 4, 2026
Severe Impact on South Asia
The move is expected to hit India, Pakistan, and Bangladesh hard. India imports nearly half of its 27 million tonnes of annual LNG from Qatar. Supply cuts could reach 40 percent, affecting city gas distribution, CNG, and household cooking gas.
Spot market prices have already surged by up to 50 percent, and tanker shipping costs have doubled to around $200,000 per trip.
Bangladesh relies on Qatar and the UAE for 72 percent of its LNG needs. Shortages could trigger prolonged power outages, increased coal use, and greater dependence on electricity imports from India.
Pakistan, almost entirely dependent on LNG from Qatar and the UAE, could face rolling blackouts despite efforts to boost domestic production and expand solar energy use.
QatarEnergy to stop downstream production
Further to the decision by QatarEnergy to stop production of liquefied natural gas (LNG) and associated products, QatarEnergy is stopping the production of some downstream products in the State of Qatar, including urea, polymers,…
— QatarEnergy (@qatarenergy) March 3, 2026
Global Market Shock
Qatar supplies roughly one-fifth of the world’s LNG, making the shutdown a major disruption for global energy markets.
Prices in Europe and Asia have already surged by up to 93 percent. Major Asian buyers—including Japan, South Korea, and China—along with European nations such as the UK, Italy, and Belgium, are facing pressure to secure alternative supplies. Analysts note that producers like the US and Australia have limited spare capacity to replace Qatar’s lost exports quickly.
Initial repairs and safety inspections are expected to take at least two weeks, with full liquefaction likely restored another two weeks later. Overall, the disruption could last a month or longer, prolonging uncertainty in global LNG markets.
