economy
QatarEnergy invokes force majeure, choking LNG to Europe and Asia
QatarEnergy has declared force majeure on some long-term liquefied natural gas supply contracts, affecting customers in Europe and Asia and further crimping global supply.
TL;DR
- QatarEnergy declared force majeure on some long-term LNG supply contracts.
- The declaration affects customers in Europe and Asia, including Italy, Belgium, South Korea, and China.
- Iranian missiles struck QatarEnergy's LNG facilities at Ras Laffan Industrial City, causing extensive damage.
- The attacks disrupted nearly 17% of Qatar's export capacity.
- Estimated annual revenue loss is $20 billion.
- Repairs to the facilities may take up to five years.
- Ras Laffan is the world's largest LNG export plant, accounting for nearly 20% of global LNG supply.
- Previous Iranian drone attacks had also prompted production pauses.
- Global energy prices are soaring due to the war and the closure of the Strait of Hormuz.