Iran's attacks on Qatar's energy infrastructure have had a devastating impact on the liquefied natural gas (LNG) sector, taking approximately 17% of the country's export capacity offline for an estimated period of three to five years, according to statements from QatarEnergy's CEO, Saad al-Kaabi.
Two of the 14 liquefaction facilities and one of the two gas-to-liquid conversion units have been damaged, which will reduce annual production by about 12.8 million tons. Financial losses are estimated at around 20 billion dollars per year, and deliveries to Europe and Asia are threatened. QatarEnergy will invoke the force majeure clause for long-term contracts, affecting deliveries to Italy, Belgium, South Korea, and China. The resumption of production depends on the cessation of hostilities, and repair work has not yet begun.
The impact also extends to other exports, including condensate and liquefied petroleum gas, affecting global industries, including the semiconductor industry in South Korea. The extent of the destruction has been compared to a regression of 10-20 years in the region's energy infrastructure.
Sources
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