Iran Strikes Knock Out 17% of Qatar LNG Capacity, Triggering $20 Billion Loss

Iranian attacks have disabled 17% of Qatar’s liquefied natural gas export capacity, causing an estimated $20 billion in annual revenue losses and disrupting global energy supplies, according to QatarEnergy.

Energy Minister and CEO Saad al-Kaabi said two of the country’s 14 LNG production trains and one gas-to-liquids facility were damaged, removing 12.8 million tons per year of LNG from the market for up to five years.

QatarEnergy has declared force majeure on long-term LNG contracts affecting key buyers in Italy, Belgium, South Korea and China, as the country struggles to restore operations.

The damage follows Iranian strikes on Gulf energy infrastructure in response to earlier attacks on its own facilities. Kaabi said production cannot resume until hostilities end.

The impact extends beyond LNG. Qatar’s condensate exports are expected to fall by 24%, liquefied petroleum gas by 13%, helium by 14%, and both naphtha and sulphur by 6%, disrupting industries ranging from food services to semiconductor manufacturing.

Major international partners are also affected. ExxonMobil holds stakes in the damaged LNG trains, while Shell is involved in the impacted gas-to-liquids facility. Repairs to LNG infrastructure could take three to five years, while the GTL facility may be restored within a year.

The scale of destruction, estimated at $26 billion in infrastructure, is expected to set the region’s energy sector back by up to two decades. Qatar’s North Field expansion project has also been halted and could face delays exceeding one year.

Kaabi warned against targeting energy infrastructure, stating that the conflict between Iran and Israel should not involve regional oil and gas facilities.