The attack carried out by Iran’s Islamic regime this Wednesday (18) against energy facilities in Ras Laffan, Qatar, reduced the country’s liquefied natural gas (LNG) export capacity by around 17% and could affect global energy supplies, according to state-owned QatarEnergy in an official statement this Thursday (19).
The industrial city of Ras Laffan is Qatar’s main energy hub and home to the largest LNG production complex in the world. Iran’s attack hit liquefaction units known as Trains 4 and 6, which together produce around 12.8 million tons per year, a volume equivalent to approximately 17% of Qatar’s LNG exports.
According to state-owned QatarEnergy, the destruction of the facilities will cause an estimated loss of around US$20 billion (R$104 billion) per year in revenue and will require up to five years for the systems to be fully repaired. The company reported that it may declare force majeure in long-term contracts, which should affect supply to markets in Europe and Asia.
Qatar’s Minister of State for Energy Affairs and the company’s executive director, Saad Sherida Al-Kaabi, stated that Iran’s attack carried out this Wednesday represents not only a blow against the country, but also against global energy stability.
In addition to the gas liquefaction lines, the bombing also hit the Pearl GTL facility, operated by the British multinational oil company Shell, which transforms natural gas into fuels and other derivatives. According to the company, at least one of the units must remain out of operation for a minimum period of one year, reducing the production of condensates, LPG, naphtha, sulfur and helium.
Qatar’s gas heart
The Ras Laffan complex, located about 80 kilometers north of Doha, is considered the heart of Qatar’s gas industry. The site processes volumes from the North Field field, one of the largest natural gas reserves in the world, and allows the country to export tens of millions of tons of LNG per year to several continents.
Energy sector analysts estimate that any significant interruption in Qatar’s production could have direct effects on the international market, as the country is among the largest exporters of liquefied natural gas on the planet. The reduction in exports comes amid increased tensions in the Middle East, raising fears of impacts on the global economy and energy supply for fuel-dependent countries.
Kristy Kramer, director of LNG strategy at Wood Mackenzie, a research, data and consulting firm specializing in energy and natural resources, told the website CompressorTechNews that a longer shutdown in Qatar’s gas production tends to reduce global supply and keep prices high for longer, increasing volatility in the energy market.
