Natural Gas Prices Surge Following Qatar Facility Drone Attack

Natural gas prices have surged significantly after Qatar Energy halted liquefied natural gas production due to a drone attack on its Ras Laffan complex. According to Jin10, this incident has heightened market concerns about the supply capacity through the Strait of Hormuz. Citigroup's Anthony Yuen noted in a report prior to the shutdown that if the supply disruption lasts around two weeks, it could push Dutch TTF and Asian JKM prices to $14 to $18 per million British thermal units, equivalent to €40 to €50 per megawatt-hour. Should the disruption exceed expectations, prices might rise to approximately $30 per million British thermal units, or nearly €100 per megawatt-hour. He added that if the conflict ends in the coming days with a 'credible de-escalation,' prices could quickly return to pre-conflict levels. Currently, Dutch TTF prices have increased by 46%, reaching €46.70 per megawatt-hour.