QatarEnergy and Chevron Halt Production
Iranian drones targeted energy facilities in Qatar. The Qatari Ministry of Defense announced that one drone struck a water reservoir at a power plant in the Mesaieed area, while another hit a QatarEnergy LNG facility in Ras Laffan Industrial City.
Ras Laffan is the world’s largest LNG production and export hub, supplying about one-third of global LNG. Following the attack, QatarEnergy stated: “Due to military strikes on facilities in Ras Laffan and Mesaieed, production of LNG and related products has been suspended.”
Qatar’s North Field includes three unmanned offshore platforms producing 2.9 billion cubic feet of gas per day. The output is transported to shore via two pipelines, with nearly all LNG exports passing through the Strait of Hormuz.
Asian Markets at Risk
Qatar’s LNG exports are primarily tied to long-term contracts with Asian buyers. China, India, South Korea, and Japan account for 82% of QatarEnergy’s customers.
• In 2023, Qatar signed a 27-year deal with China’s Sinopec.
• In 2024, it renewed a 20-year contract with India’s Petronet.
Qatar also established new partnerships across Asia, including a 15-year agreement with U.S.-based Excelerate Energy. With LNG output representing about 20% of global supply, Qatar is the world’s second-largest exporter after the U.S., playing a crucial role in balancing demand in Asia and Europe.
Israel Shuts Down Leviathan and Karish Fields
In parallel, the Israeli government ordered Chevron to suspend operations at Leviathan, the country’s largest offshore gas field. Partner company NewMed Energy announced that a force majeure declaration on gas sales would follow.
Earlier the same day, Energean confirmed it had received instructions to halt production at the Karish field off Israel’s coast. Leviathan is vital for Israel’s domestic gas supply and also provides critical exports to Jordan and Egypt.
NewMed, listed on the Tel Aviv Stock Exchange, reported that Energy Minister Eli Cohen ordered Chevron on February 28 to suspend activities at Leviathan “until further notice” based on security advice. Petroleum Commissioner Chen Bar-Yosef subsequently mandated the shutdown and required partners to prepare a “flexible operating policy” for the platform.
NewMed stated that, in line with gas sales agreements, Leviathan partners would notify customers that the force majeure clause has been activated due to the suspension of production.
