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.
HSBC in the UAE has become the first market in the bank's global network to launch an upgrade to its Global Money Account, a fully integrated multi-currency account and debit card designed for the way international customers live, earn, travel and support family across borders.
Iran has sufficient foreign currency reserves despite U.S. sanctions, Central Bank Governor Abdolnaser Hemmati said on Tuesday, after U.S. Treasury Secretary Scott Bessent said Tehran was lashing out because it was losing the economic war.
Iranian leaders are acknowledging the economic toll of war with the U.S., with the supreme leader urging the government to address the hardship and the president saying foreign trade has shrunk by a third due to the American sanctions and blockade.
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