QatarEnergy has announced the declaration of force majeure on select long-term liquefied natural gas (LNG) supply contracts affecting customers in Italy, Belgium, South Korea, and China due to production disruptions attributed to the ongoing US-Israeli conflict with Iran, as reported by Al Jazeera.
The energy markets globally have been in turmoil following the commencement of US and Israeli military actions against Iran in late February. Iran’s missile and drone attacks in the Middle East, particularly in the Gulf region, have targeted key oil and gas facilities, leading to widespread international criticism, according to Al Jazeera.
The closure of the vital Strait of Hormuz, a critical passage for approximately one-fifth of the world’s energy transportation, has exacerbated concerns as energy prices surge.
Saad al-Kaabi, the CEO of QatarEnergy, recently stated that an Iranian assault on Qatar’s Ras Laffan gas facility resulted in the destruction of nearly 17% of the country’s LNG export capacity, causing an estimated $20 billion in annual revenue losses and jeopardizing supply chains to Europe and Asia.
Al-Kaabi informed Reuters that two out of Qatar’s 14 LNG trains, the infrastructure responsible for gas liquefaction, and one of its gas-to-liquids facilities sustained damages from the Iranian attacks. The necessary repairs are expected to halt 12.8 million tonnes of LNG production annually for a period of three to five years.
