Qatars LNG production hit by Iran attacks for at least five years

QatarEnergy CEO Saad al-Kaabi has stated that his company may need to declare force majeure on long-term contracts for liquefied natural gas (LNG) supplies due to damage caused by Iranian attacks. The damage resulted in the destruction of two LNG trains and one gas-to-liquids facility, which will sideline 12.8 million tonnes of LNG production per year for three to five years.

The attacks occurred on Wednesday, causing an estimated $20 billion in lost annual revenue and threatening supplies to Europe and Asia. QatarEnergy’s CEO said that the repairs will take place over a period of three to five years, during which time the company may need to declare force majeure on its contracts.

Al-Kaabi also stated that the damage has had a significant impact on the region, with estimates suggesting it could set back production by 10 to 20 years. The cost of rebuilding the damaged units is approximately $26 billion.

The Iranian government has responded to the attacks by launching a series of strikes on oil and gas facilities across the Gulf region. Iran’s Foreign Minister Abbas Araghchi has warned that his country will show “zero restraint” if its infrastructure is targeted again, while condemning the Israeli military’s attack on its South Pars offshore gasfield.

The situation has heightened tensions in the region, with QatarEnergy’s CEO calling for international cooperation to prevent further attacks on oil and gas facilities.

Source: Al Jazeera