Big Chunk of Qatar’s LNG Capacity Wiped Out After Iran Strikes

The strikes damaged two LNG trains and one gas-to-liquids (GTL) facility, cutting about 12.8 million tonnes per year from Qatar’s production capacity.

The disruption is estimated to result in annual revenue losses of around $20 billion.

The escalation came after Iran launched strikes on US and Israeli asssets near the Gulf energy infrastructure in response to earlier attacks on its own gas assets.

The affected facilities, valued at about $26 billion, include assets in which ExxonMobil holds major stakes; 34 percent in one LNG train and 30 percent in another.

QatarEnergy is now expected to declare force majeure on long-term LNG supply agreements, affecting key buyers in Europe and Asia, including Italy, Belgium, South Korea, China, and Pakistan.

The damage is also set to impact other energy exports. Condensate shipments are projected to decline by approximately 24 percent, while liquefied petroleum gas (LPG) output may drop 13 percent. Helium production could fall by 14 percent, with naphtha and sulphur output each expected to decrease by around 6 percent.

Qatar had previously declared force majeure on its LNG exports following earlier strikes on the Ras Laffan industrial hub. Production cannot resume until security conditions stabilize, so there’s no clear timeline for full recovery.