European natural gas prices surge nearly+50 percent after Qatar halted production at the largest Liquefied Natural Gas (LNG) plant in the world following tensions in the region, research shows.
QatarEnergy earlier today halted LNG production following airstrikes by Iran on a US military base in the region. Saudi Arabia also announced earlier a temporary closure of one of its largest oil facilities following tensions in the region.
This is a sudden LNG supply-risk repricing only hours after QatarEnergy halted production. If it’s more than a short pause, expect sustained volatility across anything tied to LNG cargo availability. Asian buyers like Pakistan could miss out on scheduled cargoes from the supplier indefinitely, a sector expert told ProPakistani.
Traffic in the region has dropped sharply in the last 24 hours, according to marine tracking service “MarineTraffic”.
The expert opined that compared to Asian buyers, Europeans are still partially positioned to secure cargoes from other sellers. Backups potentially include US LNG, which currently covers almost 60 percent of the European Union’s LNG supply.
Other potential sellers include Algeria/Azerbaijan, which hold massive storage capacity.
Hypothetically, a month-long Qatar LNG suspension could leave a tight but manageable buffer if LNG demand drops in March 2026. Norway/US LNG reroutes + demand cuts could cover the gap, though prices spike and refilling pressure rises fast, which is bad for overall energy prices across the globe, he added.
