MANILA, Philippines — Iranian attacks have knocked out 17% of Qatar’s liquefied natural gas (LNG) export capacity, with QatarEnergy warning that repairs could take three to five years, resulting in an estimated $20 billion in lost annual revenue and threatening global energy supplies.

QatarEnergy CEO Saad al-Kaabi confirmed that two of Qatar’s 14 LNG trains and one of its two gas-to-liquids (GTL) facilities were severely damaged in the strikes. The disruption sidelines 12.8 million tons per year of LNG production, a significant blow to the world’s largest LNG exporter.

Al-Kaabi described the incident as unprecedented, saying, “I never in my wildest dreams would have thought that Qatar would be — Qatar and the region — in such an attack, especially from a brotherly Muslim country in the month of Ramadan, attacking us in this way.”

The damage has immediate implications for Europe and Asia, which rely heavily on Qatari LNG to meet energy demands. Analysts warn that the loss of nearly one-fifth of Qatar’s export capacity could tighten global supply, drive up prices, and force countries to seek alternative sources.

QatarEnergy may declare force majeure on long-term contracts, potentially disrupting supply agreements with major importers. Al-Kaabi urged caution, stating, “Everybody should stay away from oil and gas facilities,” highlighting the vulnerability of critical energy infrastructure in the region.

The attacks come amid escalating tensions linked to the U.S.-Israeli conflict with Iran, raising fears of broader instability in the Gulf. Energy experts note that the incident underscores the geopolitical risks facing global energy markets, particularly as LNG has become a cornerstone of Europe’s energy security strategy following reduced reliance on Russian gas.

With repairs expected to take years, the disruption is likely to reshape LNG trade flows and intensify competition among importers. For the Philippines and other Asian nations dependent on LNG imports, the situation could translate into higher energy costs and increased pressure on governments to secure stable supply contracts.

This development highlights the fragility of global energy infrastructure and the far-reaching consequences of regional conflicts on international markets. QatarEnergy’s warning signals a prolonged period of uncertainty for LNG buyers worldwide.

Image from Qatar Energy