Qatar's LNG Industry Wiped Out: $24 Billion in Lost Revenue Amid US-Iran Conflict

The conflict between the US and Iran has had a devastating impact on Qatar's economy, particularly its liquefied natural gas (LNG) industry. The country's LNG exports plummeted by 96% over the past six months, resulting in nearly $24 billion in lost gas revenue. This represents roughly five months' worth of national income for Qatar.

The destruction of key infrastructure has further exacerbated the issue, with Iranian missile and drone strikes damaging the Ras Laffan LNG complex. Repair work is expected to take up to five years, significantly reducing Qatar's export capacity. The country dispatched just 18 LNG cargoes in the past six months, down from 509 during the same period last year.

The International Monetary Fund (IMF) predicts an 8.6% contraction for Qatar this year, making it the steepest economic decline among the six Gulf states. However, Qatar's $500-billion sovereign wealth fund provides a significant financial buffer to mitigate the effects of the crisis.

Tarik Yousef, a senior fellow at the Middle East Council on Global Affairs, noted that officials are 'seriously contemplating' substantial further spending cuts next year if the crisis continues into the final quarter. The authorities have managed the crisis effectively, but the hit has been massive,' he said.