Qatar’s state-owned energy company halts LNG production after Iran drone attacks

QatarEnergy said Monday that it had halted liquefied natural gas production due to attacks by Iran on its operating facilities.

QatarEnergy is one of the world’s largest providers of LNG. About 20% of global LNG exports come from the Gulf, primarily Qatar, and are shipped through the Strait of Hormuz, according to energy consulting firm Kpler.

Qatar’s Defense Ministry said earlier that two drones launched from Iran had struck facilities in the country. QatarEnergy said the attack hit its facilities at Ras Laffan Industrial City and Mesaieed Industrial City. There were no casualties, the Defense Ministry said.

Shares of U.S. LNG exporters Cheniere and Venture Global jumped nearly 7% and more than 16%, respectively, in premarket trading.

Iran has launched missiles at U.S. allies across the Gulf in retaliation for massive strikes by the U.S. and Israel that killed the Islamic Republic’s Supreme Leader Ayatollah Ali Khamenei.

The strikes against Qatar signal that Tehran is widening its response to target regional energy facilities. Saudi Aramco’s Ras Tanura refinery was attacked by a drone, an industry source told CNBC. The refinery has been closed as a precautionary measure, the source said.

LNG is a type of natural gas that is super cooled into a liquid state and loaded on tankers for transport around the world. Natural gas is used primarily for electricity production.