Qatari authorities have officially reported "significant damage" to the Ras Laffan complex, the world's largest LNG production facility, as a result of a series of Iranian missile strikes.
The global natural gas market is bracing for unprecedented turbulence, Bloomberg reports.
Several LNG infrastructure facilities were hit by massive missile attacks, causing widespread fires and serious structural damage.
Although shipments from this plant, which supplies approximately 20% of global LNG supplies, were halted earlier this month due to the outbreak of war, the physical destruction of the facilities dramatically changes the long-term outlook. Now Europe and Asia must prepare for extremely high gas prices to persist not just until the end of the conflict, but for a much longer period.
"Successful attacks on Ras Laffan could trigger a long-term global gas shortage," said Sol Kavonic, energy analyst at MST Marquee. "This is a critical event. Even after the war ends, the supply impact could linger for months or even years while repairs are carried out and unique spare parts are procured."
The market reaction was immediate. Since the outbreak of war with Iran in late February, gas contracts in Europe have already soared by more than 70%, while Asian LNG futures have jumped 88%. On Thursday morning, panic even reached the United States: American futures, traditionally shielded from global price fluctuations thanks to the country's status as a net exporter, gained 6.3% in early trading.
Traders note that the true scale of the disaster for the gas market will become apparent with the opening of European trading. Since the plant was already effectively idle due to the blockade of the Strait of Hormuz, markets had priced in risks only for the nearest futures. Now that the prospect of a quick restart has disappeared, price pressure will inevitably spill over to summer and winter futures, as well as 2027 contracts.
The shutdown of the Ras Laffan complex is immediately compressing the global LNG market. Analysts recently predicted that the market would move into surplus in 2026 thanks to the launch of new projects. Instead, the world finds itself on the brink of a severe energy shortage.
Developing countries with budget deficits, such as India and Bangladesh, will be hit hardest. For developed economies—from the UK to Japan—this means an inevitable slowdown in industrial activity and a spiral of rising utility bills for households.