Qatar’s decision to suspend LNG production in the face of Iranian attacks on its energy infrastructure is having a domino effect on the country’s industrial sector.
As well as gas, QatarEnergy has also halted output of downstream products such as methanol, polymers, and urea, prompting local industrial groups to suspend their own operations.
Industries Qatar — which makes fertilizer, petrochemicals, and steel — and Mesaieed Petrochemical Holding Company have reduced or halted the production of some products. Gulf International Services, a conglomerate part-owned by QatarEnergy, has also paused some energy sector activities.
Qatar Aluminum Co. is enacting a “controlled shutdown” of its operations over the course of this month. Even if the conflict ends soon, the consequences of some of these decisions will linger: It could take as long as a year to restart the Qatari smelter.