Qatar LNG Exports Cut 17% After Missile Strikes, $20B Revenue Loss Expected

QatarEnergy has confirmed that missile attacks on its Ras Laffan Industrial City have reduced the country’s liquefied natural gas (LNG) export capacity by about 17% and could result in around $20 billion in annual revenue losses.

The strikes, which took place on March 18 and in the early hours of March 19, damaged key production facilities at the site, one of the world’s largest LNG hubs.

QatarEnergy said repairs to the affected infrastructure could take between three and five years, with the disruption expected to impact supply to markets in Europe and Asia.

The attacks hit LNG Trains 4 and 6, with a combined capacity of 12.8 million tonnes per annum. The two trains account for approximately 17% of Qatar’s LNG exports. Train 4 is a joint venture between QatarEnergy and ExxonMobil, while Train 6 is also jointly operated by the two companies.

“The damage sustained by the LNG facilities will take between three to five years to repair. The impact is on China, South Korea, Italy and Belgium. This means that we will be compelled to declare force majeure for up to five years on some long-term LNG contracts,” said Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President and CEO of QatarEnergy.

QatarEnergy said the attacks also targeted the Pearl gas-to-liquids (GTL) facility operated by Shell. One of the plant’s two production trains is expected to remain offline for at least one year while damage is assessed.

“The damage caused to one of the two trains at Pearl GTL is being assessed and is expected to be offline for a minimum of one year,” added Al-Kaabi.

The outage is expected to reduce output of associated products, including 18.6 million barrels of condensates, 1.281 million tonnes of LPG, 0.594 million tonnes of naphtha, 0.18 million tonnes of sulfur and 309.54 MCFA of helium.

QatarEnergy said emergency response teams and security forces contained the situation quickly and safely.