An Iranian attack on Qatar has damaged the country’s liquified natural gas (LNG) capacity and will impact deliveries to Belgium, Italy, South Korea and China.
Iranian ballistic missiles knocked out a significant share of Qatar's LNG production capacity. According to a report by news agency Reuters, around 17 percent of the country's LNG exports have been affected by the attacks and it will take three to five years to restore this. Gas prices have risen sharply as a result.
Qatar Energy CEO Saad al-Kaabi told Reuters that two of the country's 14 LNG installations and one of the two gas-to-liquid facilities were damaged by the attacks. This will likely result in an annual revenue loss for Qatar Energy of $20 billion.
Al-Kaabi warned that Qatar would be unable to meet its long-term contracts for LNG deliveries to Italy, Belgium, South Korea, and China for as long as five years.
"I mean, these are long-term contracts that we have to declare force majeure," he said. "We already declared, but that was a shorter term. Now it's whatever the period is."
