QatarEnergy’s Chief Executive Officer Saad al-Kaabi has reported that Iranian strikes have led to a significant loss of 17 percent in Qatar’s liquefied natural gas (LNG) export capacity. This disruption is anticipated to incur an estimated loss of $20 billion in annual revenue, while also jeopardizing LNG supplies to Europe and Asia. Al-Kaabi stated that the attacks affected two of Qatar’s 14 LNG trains and one of the two gas-to-liquids facilities, resulting in a production shortfall of 12.8 million tonnes of LNG per year over a span of three to five years.

Long-term Contracts and Force Majeure Declaration

In light of the damage, QatarEnergy may be compelled to declare force majeure on long-term LNG contracts lasting up to five years for clients in countries such as Italy, Belgium, South Korea, and China. Al-Kaabi indicated that while previous force majeure declarations were limited in duration, the current situation necessitates a reassessment. QatarEnergy had previously issued a force majeure on its total LNG output after experiencing earlier attacks on its Ras Laffan production hub, which was targeted again earlier this week. Al-Kaabi emphasized that production can only resume once hostilities in the region cease.

Long or Short, get news the way you like. No ads. No redirections. Download Newspin and Stay Alert, The CSR Journal Mobile app, for fast, crisp, clean updates!

App Store –  https://apps.apple.com/in/app/newspin/id6746449540 

Google Play Store – https://play.google.com/store/apps/details?id=com.inventifweb.newspin&pcampaignid=web_share