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Iran attacks knock out 17% of Qatar LNG capacity for up to 5 years: QatarEnergy CEO
QatarEnergy CEO told Reuters that Iranian attacks have severely damaged LNG infrastructure, disrupting global supply chains.
Iranian attacks have knocked out 17% of Qatar’s LNG export capacity, disrupting global energy supplies and forcing contract suspensions, QatarEnergy CEO Saad al-Kaabi told Reuters in an exclusive interview.
Key highlights
- Iranian attacks knock out 17% of Qatar LNG capacity
- QatarEnergy CEO flags $20 billion annual revenue hit
- Supply disruptions expected for up to five years
- Force majeure declared on long-term global contracts
- Damage impacts Europe and Asia energy markets
Massive supply disruption from strikes
Two of Qatar’s 14 LNG trains and one gas-to-liquids facility were damaged in the attacks, taking 12.8 million tonnes per year of LNG capacity offline for three to five years, Kaabi told Reuters.
The disruption could result in around $20 billion in lost annual revenue, he said.
Force majeure hits global contracts
QatarEnergy has declared force majeure on long-term LNG contracts, impacting supplies to key markets including Italy, Belgium, South Korea and China, Kaabi told Reuters.
“These are long-term contracts that we have to declare force majeure,” he said in the interview.
Wider fallout across energy products
Beyond LNG, Qatar’s exports of condensate are expected to fall by about 24%, LPG by 13%, helium by 14%, and naphtha and sulphur by around 6%, Kaabi told Reuters.
The disruptions could ripple across industries, from cooking gas usage in India to semiconductor manufacturing in South Korea.
Global energy majors affected
ExxonMobil holds stakes in the damaged LNG trains, while Shell is a partner in the affected GTL facility, Kaabi told Reuters.
The GTL plant could take up to a year to repair, while LNG capacity restoration may take several years.
Production restart depends on conflict
“For production to restart, first we need hostilities to cease,” Kaabi told Reuters, adding that work has halted across affected facilities.
The attacks also raise concerns over delays to Qatar’s major North Field expansion project, which could be pushed back by more than a year.
Strategic and regional impact
Kaabi said the scale of damage could set the region’s energy infrastructure back by 10 to 20 years, while also shaking perceptions of the Gulf as a stable energy hub.
He urged all parties to avoid targeting energy infrastructure, warning of broader global consequences.
Now what?
The duration of supply disruption will depend on how quickly hostilities end and repair work can begin.
In the meantime, global LNG markets are likely to remain tight, with Europe and Asia facing heightened supply risks.
FAQs
Q1: How much of Qatar’s LNG capacity is affected?
About 17% of its total LNG export capacity has been knocked out.
Q2: How long will the disruption last?
Repairs could take between three to five years.
Q3: Which countries are affected?
Major importers including Italy, Belgium, South Korea and China.
Q4: Why is this significant?
Qatar is one of the world’s largest LNG exporters, making this a major global supply shock.
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