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Iran strikes cripple Qatar's LNG capacity: CEO says losses may run for years, over $25b rebuilding cost
Saad al-Kaabi warned that QatarEnergy may have to declare force majeure on long-term contracts for LNG supplies to Italy, South Korea, Belgium and China.
Iranian missile strikes have knocked out 17% of Qatar’s liquefied natural gas (LNG) export capacity, triggering an estimated $20 billion annual revenue loss and raising concerns over global energy supplies, QatarEnergy’s chief executive told news agency Reuters on Thursday.
QatarEnergy CEO Saad al-Kaabi said the attacks damaged two of the country’s 14 LNG trains and one of its two gas-to-liquids (GTL) facilities. As a result, 12.8 million tons per year of LNG production will be sidelined for three to five years, he added.
“I never in my wildest dreams would have thought that Qatar would be - Qatar and the region - in such an attack, especially from a brotherly Muslim country in the month of Ramadan, attacking us in this way,” Kaabi said in the Reuters interview.
The comments came after Iran launched a series of attacks on Gulf oil and gas facilities, following earlier Israeli strikes on its own energy infrastructure, targeting Qatar's Ras Laffan plant.
Long-term disruptions likely, rebuilding to cost $26b
Qatar, one of the world’s largest exporters of LNG, has already declared force majeure on its output following earlier strikes on the Ras Laffan production hub. Kaabi said the latest damage could delay the country’s ability to restore supply even after hostilities end.
Kaabi warned that QatarEnergy may have to declare force majeure on long-term contracts for LNG supplies to Italy, South Korea, Belgium and China due to the damage.
“I mean, these are long-term contracts that we have to declare force majeure. We already declared, but that was a shorter term. Now it's whatever the period is,” he said.
“For production to restart, first we need hostilities to cease,” he added.
The CEO also noted that the affected facilities cost approximately $26 billion to build.
LPG exports to fall
The impact extends beyond LNG. According to Kaabi, Qatar’s condensate exports are expected to fall by around 24%, liquefied petroleum gas (LPG) by 13%, helium by 14%, and both naphtha and sulphur by about 6%.
Qatar PM warns Iran
Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani condemned the attack, calling it “clear proof” that Iran is not only targeting US-linked interests.
Notably, US oil major ExxonMobil, a partner in the damaged facilities, holds a 34% stake in LNG train S4 and a 30% stake in train S6, the Reuters report said.
He said Qatar “retains its right in international law to respond to Iran’s attacks on LNG facilities” and warned that the strike carries “significant repercussions for global energy supplies,” reported news agency AFP.
He added, “This war needs to stop immediately, this aggression needs to stop immediately.”
Despite the damage, Iran signalled it is prepared to escalate further. Foreign Minister Abbas Araghchi on Thursday said Tehran would not hold back if its energy infrastructure is targeted again.
“Our response to Israel's attack on our infrastructure employed FRACTION of our power. The ONLY reason for restraint was respect for requested de-escalation,” Araghchi said in a post on X.
“ZERO restraint if our infrastructures are struck again.”
