Iranian missile and rocket strikes have cut approximately 17% of Qatar's liquefied natural gas (LNG) export capacity, according to Saad al-Kaabi, CEO of QatarEnergy and Qatar’s minister of state for energy affairs, in an interview with Reuters on Thursday [1]. The disruption is expected to result in an estimated $20 billion in lost annual revenue and threatens LNG supplies to both Europe and Asia [1]. The attacks damaged two LNG trains and one of QatarEnergy's two gas-to-liquids facilities, sidelining roughly 12.8 million tons per year of output for three to five years [1]. QatarEnergy declared force majeure on its entire LNG output following the attacks on Ras Laffan Industrial City, allowing it to suspend deliveries due to the extensive damage [1]. This force majeure will affect long-term contracts for up to five years, impacting supplies to Italy, Belgium, South Korea, and China [1]. Fires and extensive damage were reported at Ras Laffan, but there were no casualties [1]. The strikes came after Iran targeted Gulf energy infrastructure in retaliation for an Israeli strike on its South Pars gas field on Wednesday [1]. Qatar, which accounts for nearly 20% of global LNG supply, now faces a significant reduction in its export capacity, raising concerns about global energy security [1]. President Donald Trump commented on Truth Social that Israel would halt further strikes on Iran’s South Pars gas field unless Tehran escalates, warning that the United States could respond with overwhelming force if Qatar’s LNG facilities are targeted again [1]. Al-Kaabi emphasized the need for hostilities to cease before production can restart and urged all countries to stay away from oil and gas facilities, stating, "If Israel attacked Iran, it's between Iran and Israel. It has nothing to do with us and the region" [1].
CONCLUSION
The Iranian strikes have caused a major disruption to Qatar's LNG output, with significant implications for global energy supply and revenue. The declaration of force majeure and the sidelining of key facilities are expected to impact long-term contracts and deliveries to multiple countries. Market sentiment is negative, and the event is likely to have a high impact on global LNG markets until hostilities cease and repairs are made.