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Missile attacks cause extensive damage at Qatar's Ras Laffan facility
Qatar's state-run energy company, QatarEnergy, confirmed that its Ras Laffan industrial hub sustained severe damage in missile strikes overnight. The attacks targeted critical liquefied natural gas (LNG) infrastructure, including Shell's Pearl gas-to-liquids plant and multiple LNG processing facilities, resulting in large fires and significant structural harm.
Global gas prices spike amid supply disruption fears
Gas markets reacted sharply to the news, with UK prices jumping over 30% at the opening of trading on Thursday before settling at a 22% increase, reaching 170p per therm. European gas prices also rose by 20%. Analysts described the surge as "huge," warning that the attacks could prolong supply disruptions far beyond initial expectations.
"Market expectations had been for a short disruption, with a controlled restart restoring supply to pre-conflict levels by mid-2026. That outlook now appears increasingly unlikely."
Kristy Kramer, Head of LNG Strategy and Market Development, Wood Mackenzie
Ras Laffan: A critical node in global energy supply
Located 80km northeast of Doha, Ras Laffan Industrial City is Qatar's primary LNG production hub, responsible for roughly 20% of the world's supply. The site houses gas-to-liquids plants, LNG storage tanks, and an oil refinery, alongside operations by international firms such as ExxonMobil, Chevron, and Shell. The facility sits adjacent to the North Dome gas field, which Qatar shares with Iran-where it is known as South Pars.
Production at Ras Laffan has been suspended since early March, following the outbreak of regional hostilities. The latest strikes have deepened concerns about long-term energy security, particularly as LNG supplies are difficult to replace quickly.
Analysts warn of prolonged market impact
Energy consultancy Wood Mackenzie stated that the attacks "fundamentally reshape the global LNG outlook," with recovery timelines now likely extended. Nick Butler, former BP strategy chief and UK government adviser, emphasized that the disruption would reduce global LNG availability, driving prices higher due to limited alternatives.
While gas prices remain below the peaks observed after Russia's invasion of Ukraine, the ripple effects are expected to reach consumers. In the UK, where gas sets wholesale electricity prices-even for households using solar or nuclear power-rising costs could soon translate into higher energy bills.
"In the short term, someone is going to have to pay more, and we need to be planning for that. The government will have to intervene with a strategy for energy security and protections for those facing higher costs in the coming months."
Nick Butler, Former BP Strategy Head
Regional tensions escalate as attacks follow tit-for-tat strikes
The missile strikes on Ras Laffan occurred amid reports that Israel had previously targeted a petrochemical complex in Iran. Analysts fear the latest incidents mark a dangerous escalation in the conflict, with potential for further disruptions to energy infrastructure.
The UK, which sources most of its gas from Norway (75%) and the US (17%), imports less than 2% of its LNG from Qatar. However, global price fluctuations still directly impact domestic energy costs, underscoring the interconnected nature of the market.
