QatarEnergy has announced a decision to stop downstream production just a day after it announced a halt to liquefied natural gas (LNG) production.
The energy firm announced the update on Tuesday in a post on its official verified X handle.
The development follows the continued escalation of the Middle East crisis as the war between the United States, Israel, and Iran intensifies.
What the statement is saying
The company said the stoppage of production will affect several products, including urea, polymers, and methanol.
- “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, aluminum, and other products.
- “QatarEnergy values its relationships with all of its stakeholders and will continue to communicate the latest available information,” the post read.
Backstory
QatarEnergy said on Monday that it was stopping the production of LNG due to military attacks on its operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar.
This comes as Iran continues to strike Gulf countries in retaliation for Israeli and U.S. strikes 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.
What you should know
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.
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