Middle East Crisis Gas Prices

Sources: Qatar to Shut Off Gas for at Least a Month

Qatar will shut down its gas pipeline completely on Wednesday. The country will not return to normal production and export levels for at least a month, two sources told Reuters.

According to the sources, Ras Laffan – Qatar’s main gas distillation and refining facility – will not be able to restart for two weeks once it is shut down. Once production restarts, it will take another two weeks to reach full capacity.

The Qatar Gas Crisis — The Case

• Gas prices in Europe rose sharply on Monday after Iranian attacks on Qatar’s main LNG facilities and halted production, according to AFP and Bloomberg.
• This week, the price of European natural gas rose by up to 50 percent in two days, reaching 65 euros per megawatt hour, CNBC and Norwegian DN reported.
• Trade through the Strait of Hormuz came to a near standstill, increasing the risk of disruptions to LNG supplies to Europe, according to Bloomberg and DI.
• Europe's gas stocks were unusually low heading into the summer, making the region particularly vulnerable to supply disruptions, according to Bloomberg and SEB.