Iran Attack Causes Qatar's Energy Annual Revenue Loss of $20 Billion, May Announce Force Majeure on Long-Term Contracts

Iran’s latest attack on Qatar has severely damaged the world’s largest liquefied natural gas export facility, with QatarEnergy estimating a loss of approximately $20 billion in revenue.

QatarEnergy stated on Thursday that the missile strike on Ras Laffan Industrial City damaged Units 4 and 6, which together have an annual production capacity of 12.8 million tons. This accounts for about 17% of Qatar’s annual LNG exports. Repair work is expected to take up to five years to complete.

The LNG plant had previously been shut down due to a drone attack. However, this recent attack was more destructive, and the prolonged shutdown will force buyers, especially in Asia, to scramble for supply losses amounting to millions of tons.

“Countries affected include China, South Korea, Italy, and Belgium,” said CEO Saad al-Kaabi in a statement. “This means we will be forced to declare force majeure on some long-term LNG contracts, potentially lasting up to five years.”

Attacks on energy infrastructure amid Middle East conflicts have caused natural gas prices to surge.

QatarEnergy also indicated that it expects to lose about 18.6 million barrels of condensate, representing 24% of Qatar’s exports; liquefied petroleum gas (LPG) production losses of about 13% of exports; and helium losses of approximately 14% of exports.