QatarEnergy Shuts Downstream Production, LNG Over Continuous Iranian Attacks

QatarEnergy has announced to halt downstream production just a day after it announced a halt to liquefied natural gas (LNG) production over the continous Isreal/US and Iran war.

Brand News Day Nigeria reports that the energy firm made this disclosure on Tuesday in a post on its official verified X (formerly Twitter) handle.

The development is a result of the continued escalation of the Middle East crisis as the war between the United States, Israel, and Iran increases.

QatarEnergy confirmed that the stoppage of production will affect several products, including urea, polymers, and methanol.

According to the company: “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, methanol, aluminium, and other products.

“QatarEnergy values its relationships with all of its stakeholders and will continue to communicate the latest available information,” the post read.

The company, as of Monday, has announced it will be stopping the production of LNG due to military attacks on its operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in Qatar.

This, as a result of Iran’s retaliation for the Isreal and the U.S. continuous strike against the country using the Gulf countries’ American bases to strike against it, prompting precautionary shutdowns of oil and gas facilities across the Middle East.

Before the disruptions, QatarEnergy had earlier announced its fuel prices for the month of March as it also commenced expansion drives.

Meanwhile, Qatari LNG production accounts for about 20% of global supply and plays a major role in balancing both Asian and European market demand for the fuel, according to Reuters.

The Middle East crisis has affected global oil supply, leading to rising oil prices.
Global oil and gas shipping rates surged to record levels, hitting all-time highs, according to shipping data and industry sources on Tuesday.

The spike comes after Tehran targeted vessels transiting the strategic Strait of Hormuz, a key chokepoint carrying roughly one-fifth of the world’s oil and significant quantities of LNG.

Shipping through the Strait of Hormuz, which connects Iran and Oman, has slowed to a near halt following retaliatory strikes by Iran in response to U.S. and Israeli attacks.

The disruption, combined with fears of a prolonged closure, has driven oil and European natural gas prices higher, with Brent crude futures jumping nearly 10% this week amid multiple shutdowns of oil and gas facilities across the Middle East.

In Nigeria, Dangote Petroleum Refinery also increased its Premium Motor Spirit (PMS) gantry price by N100, pushing the ex-depot rate to N874 per litre from N774, in a move that signals renewed upward pressure on petrol prices nationwide.