QatarEnergy announced this in a statement on Tuesday, but it did not name the customers.
The company noted that missile attacks on its Ras Laffan production hub on 18th March and 19th March have resulted in “significant damage” to its LNG and gas-to-liquids (GTL) infrastructure.
Two LNG trains and one GTL train have been damaged.
“As a result of these events, QatarEnergy has determined that this results in the need to declare a force majeure event to some of its affected long-term LNG supply contracts, with counterparties including customers in Italy, Belgium, South Korea, and China impacted by the disruption,” the company said.
LNG Prime contacted QatarEnergy to provide further details on the force majeure, as it is unclear whether QatarEnergy has already declared force majeure or is about to do so.
Once we receive a response, we will update this article accordingly.
Beyond LNG, the attacks have also resulted in “materially reduced output” of condensate, liquefied petroleum gas, helium, naphtha, and sulphur, QataEnergy said in the statement.
“QatarEnergy is continuing to assess the full impact of these recent events on its operations, contractual obligations, and financial position, including the expected repair timeline for the damaged LNG trains and GTL facility,” it said.
Up to five years
Last week, QatarEnergy announced that it expects the damage to its Ras Laffan complex caused by missile strikes to cost about $20 billion a year in lost revenue and to take up to five years to repair, impacting supply to markets in Europe and Asia.
The firm said in that update that it will be compelled to declare force majeure for up to five years on some long-term LNG contracts.
According to QatarEnergy, the attacks damaged two liquefied natural gas (LNG) producing Trains 4 and 6 totaling 12.8 million tons per annum (mtpa) of production, representing approximately 17 percent of Qatar’s exports.
Train 4 is a joint venture between QatarEnergy (66 percent) and ExxonMobil (34 percent), while Train 6 is a joint venture between QatarEnergy (70 percent) and ExxonMobil (30 percent).
The attacks also targeted the Pearl GTL facility, a production sharing agreement operated by Shell, that converts natural gas into high-quality drop-in fuels and produces base oils used to make premium engine oils and lubricants, and paraffins and waxes.
QatarEnergy stopped producing LNG at its giant Ras Laffan complex on March 2 due to military attacks on its operating facilities.
The LNG producer declared force majeure to its affected LNG buyers on March 4.
LNG prices and shipping rates surged after these announcments with many countries such as Bangladesh and India opting to buy expensive spot LNG cargoes to secure needed supplies.
Qatar is one of the world’s largest LNG producers.
QatarEnergy is currently working on the giant North Field LNG expansion program, which includes the North Field South, North Field East, and North Field West projects.
Together, these will raise Qatar’s LNG production capacity in Ras Laffan from the current 77 mtpa to 142 mtpa in 2030.
