Doha: Qatari Minister of State for Energy Affairs, Eng. Saad bin Sherida Al Kaabi, has announced that Iranian attacks have disrupted 17 percent of Qatar's liquefied natural gas (LNG) export capacity. The attacks have led to significant financial losses, estimated at approximately $20 billion in annual revenue, and pose a threat to gas supplies to Europe and Asia.
According to Emirates News Agency, in an interview conducted by Qatar News Agency, Al Kaabi detailed the extent of the damage, revealing that two out of 14 LNG processing units and one of the two gas-to-liquids (GTL) plants were affected. The damages will result in a production halt of 12.8 million tons of LNG annually, with repairs expected to take between three to five years.
Al Kaabi expressed his shock and dismay, saying, "It never crossed my mind, not even in my worst nightmares, that Qatar, Qatar and the region, would be subjected to such an attack, especially from a sisterly Muslim country during Ramadan, and in this manner." He highlighted the potential need for QatarEnergy to declare 'force majeure' on long-term LNG supply contracts to Italy, Belgium, South Korea, and China due to the damage sustained by the two processing units.
The minister further explained, "These are long-term contracts, and we have to declare force majeure on them. We have already declared it, but for a shorter period. Now, it will be for as long as necessary." He also noted that ExxonMobil, an American company, holds a significant stake in the affected LNG facilities, with a 34 percent stake in the S4 LNG processing unit and a 30 percent stake in the S6 unit.
Al Kaabi emphasized the financial impact, stating that the cost of constructing the damaged units is approximately $26 billion. He added, "To resume production, we first need the fighting to stop." Previously, QatarEnergy had declared force majeure on all its LNG production following earlier attacks on its production facility in Ras Laffan.