Iran strikes cut 17% of Qatar gas supply, global prices may rise

Doha/Tehran: Iran's attack has wiped out 17 percent of Qatar's total gas supply. This loss is unlikely to be recouped for at least the next five years. The CEO of QatarEnergy told the news agency Reuters on Thursday that the Iranian attacks have brought 17% of Qatar's Liquefied Natural Gas (LNG) export capacity to a complete halt. He stated that the attack has resulted in an estimated loss of $20 billion in Qatar's annual revenue, and supplies destined for Europe and Asia now face a looming threat.

Speaking to Reuters, CEO Saad al-Kaabi revealed that the attacks inflicted severe damage on two of Qatar's 14 LNG trains, as well as one of its two Gas-to-Liquids (GTL) facilities. He explained that, due to necessary repair work, the supply of 12.8 million tons of LNG per year will be suspended for a period ranging from three to five years. In an interview, Kaabi remarked, "I never, even in my wildest dreams, imagined that Qatar—and this entire region—would fall victim to an attack of this nature. Especially during the holy month of Ramadan. And particularly from a brotherly Muslim nation that would strike us in such a manner."

Ras Laffan, Qatar: Iran Attack

Iran Exacts Revenge for Attack on Its Gas Infrastructure!

Iran launched its attack on the Qatari gas facility after Israel had previously struck Iran's own gas infrastructure. In retaliation for the Israeli strike, Iran carried out a series of attacks on various oil and gas installations across the Gulf region. Although the United States has denied any responsibility for the attack on the Iranian gas plant, reports suggest that Israel and the U.S. jointly carried out the strike on Iran's gas infrastructure.

Al-Kaabi told Reuters that the state-owned company, QatarEnergy, might be compelled to declare *force majeure* on long-term contracts—spanning up to five years—for LNG supplies destined for Italy, Belgium, South Korea, and China, as two of its "trains" (gas processing units) have been damaged. This implies that gas supplies from Qatar to these nations could face disruption. He further stated, "I mean, these are long-term contracts on which we will have to declare *force majeure*. We have done this before, but that was for a short duration. Now, however long this situation persists, the declaration will remain in effect for that entire period."

U.S. Oil Giant ExxonMobil Holds a Stake; Billions of Dollars Lost

It is worth noting that the U.S. oil giant ExxonMobil holds a significant stake in these damaged LNG plants in Qatar. It holds a 34% interest in Qatar's S4 plant and a 30% interest in the S6 plant. Consequently, this attack has inflicted direct and substantial financial losses upon America's largest oil company.

The impact of this attack is not limited solely to cooking gas (LNG); other products originating from Qatar have also been adversely affected. Exports of condensate—a substance used in refineries to produce petrol and diesel—are expected to decline by 24%. Furthermore, the supply of LPG (Liquefied Petroleum Gas)—or domestic cooking gas—is projected to drop by 13%. Approximately ₹2.2 trillion had been invested in the construction of these units, which have now been rendered inoperable due to the damage.