Qatar has reported that an explosion occurred during the start-up phase at an industrial zone, resulting in dozens of injuries, highlighting the risks faced by energy facilities in the Middle East as they ramp up production following a ceasefire between the US and Iran.
According to the operator QatarEnergy, an explosion and subsequent fire broke out on Sunday at a domestic natural gas supply facility in Ras Laffan. The Qatari interior ministry stated in an online declaration that the blast injured 54 people, with another 18 individuals currently unaccounted for.
The Ras Laffan plant supplies fuel for domestic industry and power generation. It remains unclear whether liquefied natural gas production will be impacted. Qatar, the world's second-largest LNG exporter prior to the conflict, had halted production of the super-chilled fuel after its large-scale facilities came under attack and the Strait of Hormuz was closed during the initial phase of US-Iran tensions. The country aims to restart operations at Ras Laffan, the world's largest LNG export facility. Markets are closely monitoring the plant's return to service, as a swift resumption could help alleviate pressure on global energy prices. Influenced by the US-Iran tensions, Dutch gas prices, an international benchmark, rose in early Monday trading.
Qatar plans to restore Ras Laffan's production to 80% of capacity within two months after the safe reopening of the Strait of Hormuz.
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