Qatar halted its production of liquefied natural gas on Monday as Israeli and U.S. strikes against Iran and Tehran's retaliation prompted precautionary shutdowns of oil and gas facilities across the Middle East.
Saudi Arabia shut its biggest domestic oil refinery after a drone strike, a source with knowledge of the matter said.
Qatari LNG production is equivalent to about 20% of global supply. The Gulf country is the world’s second largest LNG exporter after the U.S. and plays a major role in balancing Asian and European LNG market needs. Asian clients represent 82% of state-owned QatarEnergy's customers.
A wave of attacks in the Middle East stretched into a third day, also resulting in the suspension of most oil production in Iraqi Kurdistan and several major Israeli gas fields, throttling exports to Egypt.
Oil prices surged as much as 13% intraday to above $82 a barrel, the highest since January 2025, as the conflict ground shipping to a near halt in the Strait of Hormuz, through which a fifth of global oil supply flows. O/R
State oil giant Saudi Aramco's 550,000 barrels per day (bpd) Ras Tanura refinery, which was shut as a precautionary measure, is part of an energy complex on the kingdom's Gulf coast which also serves as a critical export terminal for Saudi crude oil.
Aramco did not immediately respond to an emailed request for comment.
Meanwhile, gas giant QatarEnergy said it was also ceasing production of products associated with LNG. Earlier on Monday, Qatar's government said an energy facility belonging to QatarEnergy was attacked by two Iranian drones, with authorities assessing the damage.
IRAQI KURDISTAN HALTS OIL PRODUCTION
In Iraqi Kurdistan, which exported 200,000 barrels of oil per day (bpd) via pipeline to Turkey's Ceyhan port in February, companies including DNO, Gulf Keystone Petroleum, Dana Gas and HKN Energy have stopped output at their fields as a precaution, with no damage reported.
Offshore Israel, the Israeli government instructed Chevron to temporarily shut down the giant Leviathan gas field where it is in the process of expanding capacity to around 21 billion cubic metres a year as part of a $35 billion export deal to Egypt. A spokesperson for Chevron, which also operates the Tamar gas field offshore Israel, said its facilities were safe.
Energean shut down its production vessel serving smaller gas fields.
In Iran, explosions were heard on Saturday in Kharg Island, which processes 90% of Iran's crude exports. It was unclear how the facilities were impacted.
Iran, the third largest producer in the Organization of the Petroleum Exporting Countries, pumps about 4.5% of global oil supplies. Iran's output is about 3.3 million barrels per day of crude, plus 1.3 million bpd of condensate and other liquids.
DRONES INTERCEPTED IN SAUDI ARABIA
The situation at Aramco's Ras Tanura refinery is under control, the source said. Two drones were intercepted at the facility, with debris causing a limited fire, the Saudi defence ministry's spokesperson said on Al Arabiya TV, adding there were no injuries.
Some of the refinery's units were shut as a precautionary measure but the supply of petroleum and its derivatives to local markets was not affected, Saudi state news agency SPA said, citing an unnamed official at the energy ministry.
Still, Ras Tanura's shutdown will likely add to supply anxieties as shipping through the Strait of Hormuz grinds to a near-halt after vessels were attacked around it on Sunday.
"The attack on Saudi Arabia’s Ras Tanura refinery marks a significant escalation, with Gulf energy infrastructure now squarely in Iran’s sights," said Torbjorn Soltvedt, principal Middle East analyst at risk intelligence firm Verisk Maplecroft.
"The attack is also likely to move Saudi Arabia and neighbouring Gulf states closer to joining U.S. and Israeli military operations against Iran."
Saudi Arabia's heavily fortified energy facilities have been targeted previously, most notably in September 2019 when drone and missile attacks on the Abqaiq and Khurais plants temporarily knocked out more than half of the kingdom's crude production.
Ras Tanura was attacked by Yemen's Iran-aligned Houthis in 2021.
(Reuters)
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