There will be even greater pressure on fuel prices after the latest news on energy production in the Persian Gulf.
One of the world’s biggest producer of liquefied natural gas, Qatar, has shut down its major facilities at Ras Laffan and Mesaieed because of the Iranian attacks on its exports.
This is a significant blow to the gas market because Qatar is estimated to produce about 20 per cent of world supply. The company that produces the gas, QatarEnergy, confirmed the move at 11:23pm on Monday night, Australian time.
“Due to military attacks on QatarEnergy’s operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar, QatarEnergy has ceased production of liquefied natural gas (LNG) and associated products,” it said.
The company did not release any details about the Iranian attacks. The move follows the shutdown of Saudi Aramco’s oil refinery at Ras Tanura, which was also targeted by Iran.
Australia is one of the other top LNG exporters, along with the US. The decision in Qatar is likely to flow through to prices for gas, including gas used in electricity, although Australian customers are shielded by federal policies that force producers to keep gas for the domestic market rather than export it all at higher prices.
Petrol prices are expected to rise after oil jumped to its highest level in four years.
Petrol prices are displayed at a filling station in Frankfurt, Germany, on Monday.AP