Iranian attack cripples 17% of Qatar’s LNG output, repairs may take up to five years

DUBAI/DOHA: Iranian strikes have severely damaged Qatar’s energy infrastructure, wiping out 17 per cent of the country’s liquefied natural gas (LNG) export capacity and causing an estimated $20 billion in annual revenue losses, QatarEnergy CEO Saad al-Kaabi said on Thursday.

Two of Qatar’s 14 LNG trains and one of its two gas-to-liquids (GTL) plants were hit, sidelining around 12.8 million tons of LNG per year for the next three to five years. “I never in my wildest dreams would have thought that Qatar — and the region — would face such an attack, especially from a brotherly Muslim country during Ramadan,” Kaabi said.

The attacks follow Iranian retaliation against Gulf oil and gas facilities after Israeli strikes on Iranian gas infrastructure. QatarEnergy will have to declare force majeure on long-term contracts for LNG exports to Italy, Belgium, South Korea, and China due to the damaged facilities.

The damaged LNG trains are part-owned by U.S. oil major ExxonMobil, while Shell is a partner in the affected GTL facility, which may take up to a year to repair. Train S4, in particular, impacts supplies to Italy’s Edison and Belgium’s EDFT, while Train S6 affects South Korea’s KOGAS, EDFT, and Shell in China.

Kaabi warned the attacks have set the region back “10 to 20 years” and shaken its image as a safe energy hub. The fallout extends beyond LNG: Qatar’s condensate exports are expected to drop 24%, liquefied petroleum gas (LPG) by 13%, helium by 14%, and naphtha and sulphur by 6% each. These losses could affect industries worldwide, from LPG in Indian restaurants to helium-dependent chipmakers in South Korea.

The damaged units cost around $26 billion to build. Kaabi called for all parties, including Israel, the U.S., and other countries, to steer clear of energy facilities to avoid further escalation.