ExxonMobil’s stake in the damaged Qatar LNG units is adding to global energy concerns.
DOHA: Qatari Minister of State for Energy Affairs and President and CEO of QatarEnergy, Eng. Saad bin Sherida Al Kaabi, said that Iranian attacks have disrupted 17% of Qatar’s liquefied natural gas (LNG) export capacity, resulting in estimated annual losses of around $20 billion and posing a threat to supplies to Europe and Asia.
In an interview carried by the Qatar News Agency, Al Kaabi stated that two of the country’s 14 LNG processing units were damaged, along with one of the two gas-to-liquids (GTL) plants, as a result of the attacks.
He indicated that repair work would halt the production of 12.8 million tonnes of LNG annually for a period of three to five years.
He added: “It never crossed my mind—even in my worst nightmares—that Qatar and the region would be subjected to such an attack, especially from a sisterly Muslim country during Ramadan, and in this manner.”
He explained that QatarEnergy may be forced to declare “force majeure” on long-term contracts for up to five years for the supply of liquefied natural gas (LNG) to Italy, Belgium, South Korea, and China, due to damage to the two processing units.
He stated: “These are long-term contracts, and we have to declare force majeure on them. We had already done so for a shorter period, but now it will remain in effect for as long as necessary.”
He also noted that the American company ExxonMobil is a partner in the affected LNG facilities, holding a 34% stake in the S4 LNG processing unit and a 30% stake in the S6 unit.
He further explained that the cost of constructing the damaged units is approximately $26 billion, adding, “To resume production, we first need the fighting to stop.”
QatarEnergy had previously declared force majeure on its entire liquefied natural gas production following earlier attacks on its Ras Laffan production facility.
