LNG Shock: Gulf Attacks Push European Gas Prices Up Over 30%

European natural gas prices jumped sharply on Thursday, after new attacks damaged Qatar’s key LNG hub and deepened fears over global supply. Traders reacted to reports that production at the Ras Laffan complex, which anchors Qatar’s exports, could stay offline, threatening fuel availability for import-dependent regions such as Europe and Asia in the coming months.

QatarEnergy reported that its Ras Laffan complex in Ras Laffan Industrial City suffered heavy damage after several strikes triggered large fires. The facility is the world’s largest liquefied natural gas export site and normally provides almost 20% of global LNG supply. Operations at Ras Laffan had already been halted earlier this month following an Iranian drone attack.

Qatar LNG supply under threat amid widening regional attacks

The fresh strikes hit the wider Ras Laffan area just as QatarEnergy was assessing earlier damage, reducing hopes for a fast restart. The halt follows a period of rising tensions across the Gulf, including an Israeli strike on the South Pars gas field, one of the largest worldwide, and warnings from Mojtaba Khamenei about risks to energy facilities in the region.

The fallout from the attacks is spreading beyond Qatar. Gas operations at Abu Dhabi’s Habshan facility were suspended after debris from an intercepted strike fell near the site, adding another layer of uncertainty. Analysts warn that critical infrastructure across the Gulf may now face higher security risks, which could tighten LNG flows if more plants are affected.

Analysts warn on Qatar LNG supply and extended outage risks

Market specialists stress that damage at Ras Laffan might not be repaired quickly. Arne Lohmann Rasmussen of Global Risk Management said “Qatari LNG exports could remain offline for months, or even longer in a worst-case scenario, prolonging tight market conditions.” Such an outcome would remove a major source of flexible LNG supply from global trade.

Most LNG from Qatar usually goes to Asian buyers, but a prolonged outage would shrink global supply and push competition for cargoes. European and Asian importers would then bid against each other for fewer shipments. That contest could keep European natural gas prices high and strain economies that rely heavily on overseas gas purchases for power and industry.

European markets react to Qatar LNG supply shock

Europe faces extra pressure because gas storage levels are only partly replenished after winter. The region must secure more LNG cargoes over the summer to refill tanks before the next heating season. That task becomes harder if Middle Eastern LNG flows stay limited, and if other producers cannot quickly increase exports to offset the shortfall.

Traders moved quickly as risk assessments worsened. Europe’s benchmark Dutch front-month futures climbed more than 30% in early Amsterdam trading, reaching €71.47 per megawatt-hour. The sharp rise showed concern that the Qatar outage may last for an extended period, rather than being a brief disruption that markets could easily absorb.

Political stakes around Qatar’s LNG network are also rising. Donald Trump warned that the United States would respond if Qatar's LNG infrastructure were targeted again. With investigations and damage checks still underway at Ras Laffan, energy markets face a period of heightened volatility, as traders watch whether repairs accelerate or further attacks deepen the supply shock.