Iran Attacks Qatar LNG Capacity

Iranian missile strikes on Qatar's Ras Laffan industrial hub have severely damaged two LNG production trains and one gas-to-liquids facility, knocking out 17% of Qatar's LNG export capacity (12.8 million tons per year) for an estimated three to five years. This unprecedented attack, which QatarEnergy CEO Saad Sherida al-Kaabi stated was in retaliation for Israeli attacks on Iran's gas infrastructure, is projected to cost QatarEnergy $20 billion in annual revenue and has forced the company to declare force majeure on long-term LNG contracts with major buyers including Italy (Edison (company)), Belgium (EDF Trading), South Korea (Korea Gas Corporation), and China (Shell plc). U.S. oil major ExxonMobil is a partner in the damaged LNG facilities, and Shell plc is a partner in the GTL facility. Beyond LNG, Qatar's exports of condensate, LPG, helium, naphtha, and sulphur are also expected to fall significantly. The damaged units cost approximately $26 billion to build, and production cannot resume until hostilities cease, shaking Qatar's reputation as a safe haven and escalating regional conflict.