US Natural Gas Stocks Soar After Iranian Strikes Hit Qatar Energy Facilities

American liquefied natural gas companies saw stock prices jump Thursday following reports that Iranian attacks damaged Qatar's energy infrastructure. The strikes could remove nearly one-fifth of Qatar's LNG production capacity for up to five years, potentially benefiting U.S. producers.

Stock prices for American liquefied natural gas companies skyrocketed Thursday after Qatar reported that Iranian military strikes could eliminate approximately one-fifth of its LNG production for as long as five years.

Cheniere Energy reached a record-breaking peak during trading and closed the afternoon session up roughly 7% at $285 per share. Venture Global initially jumped as much as 13% before giving back most of those gains later in the day, though the company’s stock has climbed about 50% over the past month.

The market surge came after QatarEnergy’s chief executive Saad al-Kaabi informed Reuters that Iranian bombardments had eliminated 17% of the Gulf state’s LNG shipping capabilities.

According to al-Kaabi, the attacks damaged two of Qatar’s 14 LNG production trains along with one of its two gas-to-liquids facilities. The repairs will remove 12.8 million metric tons annually of LNG production from global markets for three to five years. Qatar leads the world in LNG exports, with the United States ranking second.

Cheniere operates facilities capable of exporting over 51 million metric tons of LNG annually, while Venture Global can handle shipments exceeding 37 million tons, based on recent company earnings reports.

The military conflict that erupted late last month has created chaos in worldwide energy markets after the Strait of Hormuz was essentially closed, cutting off roughly 20% of global oil transportation and forcing QatarEnergy to halt LNG deliveries. Market experts initially predicted temporary price swings but now caution that continued attacks on energy facilities could create permanent changes in LNG and natural gas pricing.

Cheniere operates under long-term contracts for 94% of its production, while Venture Global reserves approximately 30% for immediate market sales.

Following the start of U.S. and Israeli military operations against Iran on February 28, American gas prices have risen about 12% compared to dramatic increases of 91% in Europe and 88% in Asia. Natural gas is currently trading at 37-month peaks near $21 per million British thermal units at Europe’s Dutch Title Transfer Facility benchmark and close to $20 at Asia’s Japan-Korea Marker.

Prior to the recent attacks, consulting firm Wood Mackenzie had projected that Qatari LNG production could resume full operations within four to six weeks after a temporary shutdown. That forecast will now be pushed back based on the extent of the infrastructure damage, the company stated Thursday.

“The damage to the two LNG trains at Ras Laffan will inevitably mean that suppliers elsewhere around the world will have more business for the coming few years. But the higher European and Asian gas prices we have seen in recent weeks are now likely to remain elevated for longer, which undoubtedly will result in fuel-switching in both the power and industrial sectors,” said Wood Mackenzie Europe Gas & LNG director Tom Marzec-Manser.

Columbia University’s Center on Global Energy Policy fellow Ira Joseph noted that some of Qatar’s lost production could be replaced by new American facilities expected to begin operations, including the Golden Pass LNG plant owned by Exxon Mobil and QatarEnergy in Texas, plus three additional facilities under development by Sempra, NextDecade and Venture Global.

Joseph emphasized that the critical issue going forward involves whether Qatar’s massive North Field expansion project will also face disruption.

“If it is impacted, then structurally we have to adjust our LNG prices higher,” he said. “But if we do that, we also have to weaken our demand growth outlook.”

Jefferies analysts cautioned that extended outages could result in persistently higher prices, though some demand reduction and switching from coal to gas may occur. They noted that buyers are increasingly focusing on supply diversification and geopolitical stability rather than simply seeking the cheapest LNG available.