Iranian Attacks Cripple 17% of Qatar’s LNG Capacity for Years

Iranian attacks have severely disrupted Qatar’s liquefied natural gas (LNG) export capabilities, eliminating 17% of its capacity. The strikes damaged two of Qatar’s 14 LNG trains and one of its two gas-to-liquids (GTL) facilities, according to QatarEnergy CEO Saad al-Kaabi. The losses amount to 12.8 million tons of LNG annually, which will be offline for three to five years, costing the nation approximately $20 billion in lost revenue each year.

The impact extends beyond LNG, with Qatar’s condensate exports dropping by 24%, liquefied petroleum gas (LPG) falling by 13%, and helium output declining by 14%. Naphtha and sulphur production will also decrease by 6%. The damaged units, built at a cost of $26 billion, highlight the significant economic and infrastructural setbacks caused by the attacks.

QatarEnergy may invoke force majeure on long-term contracts for LNG supplies destined for Italy, Belgium, South Korea, and China due to the damaged facilities. U.S. oil major ExxonMobil, which holds stakes in the affected LNG trains, is also impacted by these disruptions. The CEO emphasized that restarting production hinges on the cessation of hostilities.

Al-Kaabi expressed shock at the attacks, stating he never anticipated such an assault from a neighboring Muslim country, especially during the month of Ramadan. The strikes followed earlier attacks by Israel on Iran’s gas infrastructure, escalating regional tensions.