QatarEnergy Declares Force Majeure on Long-Term LNG Contracts

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Less than a week after an Iranian missile strike took out 17% of QatarEnergy's Ras Laffan complex's LNG production, the company has declared force majeure on some long-term contracts affecting Asia and Europe.

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Offline Production

On March 18, QatarEnergy's Ras Laffan Industrial City, home to liquefied natural gas (LNG) production, gas-to-liquids (GTL) production and a refinery, experienced an Iranian missile attack that took out 17% of the complex's LNG production, or 12.8 million metric tons per annum (MTPA). This week, QatarEnergy declared force majeure on certain related LNG contracts affecting South Korea, Belgium, China and Italy.

The Trains

The missile strike affected QatarEnergy's LNG production trains S4 and S6. Exxon Mobil Corporation holds a 34% stake in Train S4 and a 30% stake in S6. In an interview with Reuters immediately after the strike, Qatar Energy Chief Executive Officer Saad al-Kaabi said repairs would take three to five years, would cost the company US$20 billion in annual revenue and that the affected units, which included more than LNG production, had cost approximately US$26 billion to build.

Reuters noted that Train S4 is specifically tied to contracts with:

• Belgium's EDF Trading (EDFT), which operates in wholesale power and petroleum markets.
• Italy's Edison, which generates, sells and distributes power and natural gas in Italy and Greece. The contracts appear to affect Edison's Italian LNG deliveries. Industrial Info is tracking 12 Edison natural gas-fired facilities in Italy. Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can click here to see the related plant profiles. While the company does produce and process its own gas, it relies on imports to keep its networks functioning.

Train S6 is tied to:

• Shell plc's operations in China. Shell is the world's largest LNG trader.
• South Korea's Korea Gas Corporation (KOGAS), which operates major LNG regasification terminals and an extensive pipeline network to supply gas companies and power plants throughout the country. KOGAS is one of the world's largest LNG importers. Industrial Info is tracking several dozen major natural gas-and LNG-fired power plants in South Korea. Natural gas has provided around 20-25% of the country's power in recent years, according to various consultancies and monitoring organizations.
• Further EDFT supplies.

Other Affected Products

The missile attack has affected other units outside LNG at the Ras Laffan complex. A gas-to-liquids (GTL) unit, jointly owned by QatarEnergy and Shell, was knocked offline, accounting for around 140,000 barrels per day of products including naphtha, kerosene, propane, butane and fuel oil. The unit will take up to year to repair.

The offline LNG trains also affect production of helium, which is used in multiple high-tech operations including semiconductor manufacturing and MRI machines. The United States Geological Survey estimated that Qatar produced more than 30% of the world's global helium supply. Anish Kapadia of consultancy AKAP Energy estimated that about 30% of this production could be lost in 2026, accounting for about 11% of global helium supplies. South Korea and Taiwan are major chip manufacturers and major consumers of Middle East helium, with a report last week from Barclay's that in 2025 South Korean manufacturers bought 55% of their helium from countries in the Gulf Cooperation Council (GCC). In addition to Qatar, the GCC includes Saudi Arabia, Bahrain, Kuwait, Oman and the United Arab Emirates. Taiwan, the world's leader in semiconductor production, sourced 69% of its helium from GCC countries in 2024.

Key Takeaways

• As expected, QatarEnergy has declared force majeure on certain LNG contracts related to its Ras Laffan complex.
• Ras Laffan suffered a missile strike on March that not only took out 17% (12.8 MTPA) of its LNG production, but also affected other gas-to-liquids products as well as helium production, a byproduct of the LNG production process.
• In an interview around the time of the strike, the CEO of QatarEnergy said repairs to the LNG units would take three to five years.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).