Iranian Attacks Wipe Out Quarter of Qatar's LNG Capacity

Iranian attacks on Gulf oil and gas facilities have severely impacted Qatar's liquefied natural gas (LNG) export capacity, according to Saad al-Kaabi, CEO of QatarEnergy. The damage has knocked out 17% of Qatar's LNG production for up to five years, resulting in an estimated $20 billion in lost annual revenue.

The attacks have damaged two of Qatar's 14 LNG trains and one of its two gas-to-liquids (GTL) facilities, with repairs set to sideline 12.8 million tons per year of LNG production for three to five years. This is expected to affect supplies bound for Italy, Belgium, South Korea, and China, forcing QatarEnergy to declare force majeure on long-term contracts.

ExxonMobil, a partner in the damaged facilities, holds a 34% stake in LNG train S4 and a 30% stake in train S6. The damage also extends to other exports, including condensate (down by around 24%), liquefied petroleum gas (LPG) (13%), helium output (14%), naphtha, and sulphur (both down by 6%).