QatarEnergy extends production halt to downstream products

DOHA, March 4, 2026 – QatarEnergy has stopped production of urea, polymers, methanol, aluminium and other downstream products in Qatar following its decision to halt LNG output, the company said on Tuesday.

The suspended products form part of Qatar’s fertiliser, petrochemicals and metals industries, which rely on natural gas feedstock from the country’s vast reserves. The company said it values its relationships with stakeholders and will continue to provide updates as more information becomes available.

Escalating war between Iran and a US-Israeli military coalition disrupted energy markets on Wednesday as tanker traffic through the Strait of Hormuz plunged and freight rates surged amid the conflict. The fighting has also interrupted oil operations across the Gulf and raised fears of a global supply shock, with Tehran warning crude prices could reach USD 200 per barrel if attacks on regional energy infrastructure escalate.

Qatar is a major global producer of fertilisers and petrochemicals derived from natural gas feedstock, with about 6 million tonnes per year of urea production capacity, making it the GCC’s largest producer of the fertiliser. A new complex under development is expected to raise capacity to 12.4 million tonnes per year, reinforcing the country’s role as a major global exporter.

QatarEnergy is Qatar’s state-owned energy company and one of the world’s largest LNG producers, with LNG production capacity of about 77 million tonnes per year and expansion plans targeting 126 million tonnes per year later this decade. The company operates across upstream gas development, LNG, petrochemicals and international energy investments.

Also on Tuesday, the company declared force majeure to affected buyers after stopping LNG and associated products output.

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