Qatar's Energy Minister Saad Sherida Al-Kaabi announced Friday that Iranian attacks on the country's energy infrastructure would reduce liquefied natural gas (LNG) export capacity by 17%, resulting in estimated annual revenue losses of $20 billion.
Qatar is the world's largest LNG exporter © Mena Today
Qatar's Energy Minister Saad Sherida Al-Kaabi announced Friday that Iranian attacks on the country's energy infrastructure would reduce liquefied natural gas (LNG) export capacity by 17%, resulting in estimated annual revenue losses of $20 billion.
"Repairs to the damaged LNG facilities will take between three and five years," Al-Kaabi said in a statement. "This will have repercussions for China, South Korea, Italy and Belgium."
The minister confirmed that Qatar would be forced to declare force majeure, the legal clause invoked when events beyond a party's control prevent it from fulfilling contractual obligations, on certain long-term LNG contracts for a period of up to five years.
The implications extend far beyond Qatar's balance sheet. Qatar is the world's largest LNG exporter, supplying critical energy to some of the world's most industrialized economies.
A 17% reduction in export capacity will send shockwaves through energy markets in Asia and Europe, hitting countries already struggling with elevated energy prices since the start of the conflict.
For China and South Korea, two of Qatar's largest LNG customers, the disruption threatens industrial production and energy security.
For Italy and Belgium, whose European gas networks depend heavily on Qatari supplies, the force majeure declaration represents a potentially severe energy crisis heading into the next winter season.
Saudi Arabia reserves the right to act militarily against Iran and any trust with Tehran has been shattered, the Saudi foreign minister said early on Thursday, after Riyadh was targeted by Iranian ballistic missiles.
Iran's Foreign Minister Abbas Araqchi called Thursday for "vigilance and coordination" among regional countries to counter what he described as "destabilising and escalatory actions" by the United States and Israel, in separate phone calls with his counterparts in Turkey, Egypt and Pakista
Iranian aerial attacks since Wednesday have caused extensive damage to the world's largest gas plant in Qatar, targeted a refinery in Saudi Arabia, forced the UAE to shut gas facilities and set off fires at two Kuwaiti refineries.
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