Qatar’s ability to export liquefied natural gas (LNG) has been significantly reduced following attacks attributed to Iran, according to Saad bin Sherida Al-Kaabi, Minister of State for Energy Affairs and CEO of QatarEnergy.
The disruption has affected approximately 17% of the country’s LNG export capacity, translating into an estimated $20 billion in lost annual revenue and posing risks to supply chains serving Europe and Asia.
In remarks to Reuters, Al-Kaabi said that two of the country’s 14 LNG processing units were damaged, along with one of its gas-to-liquids facilities. He noted that repair efforts are expected to halt production of around 12.8 million tonnes of LNG per year for a period ranging between three and five years.
Al-Kaabi expressed shock at the scale and nature of the attacks, stating that he had never anticipated such an incident, particularly during the holy month of Ramadan and involving a neighboring Muslim country.
The damage may compel QatarEnergy to invoke force majeure clauses in long-term LNG supply contracts with countries including Italy, Belgium, South Korea, and China.
While the company had previously declared force majeure for shorter durations, Al-Kaabi indicated that the current situation could necessitate a longer-term declaration aligned with the recovery timeline.
He also highlighted the involvement of U.S.-based ExxonMobil, which holds a 34% stake in one of the affected LNG units (S4) and 30% in another (S6).
The minister estimated the construction cost of the damaged facilities at approximately $26 billion, adding that production cannot resume until hostilities cease.
QatarEnergy had earlier declared force majeure across all LNG output following previous attacks on its Ras Laffan production hub.