QatarEnergy’s LNG facilities at the northern industrial city of Ras Laffan are the beating heart of the emirate’s economy. However you parse it, the company’s operations are central to the Qatari economy and the continued closure of the Strait of Hormuz is inflicting a huge financial penalty. Hydrocarbons account for around 80% of trade revenue, 80% of government revenue and 35% of GDP.
Unable to export LNG through the Strait of Hormuz, the situation for Qatar worsened last week, when an Iranian missile strike on Ras Laffan caused substantial damage to Shell’s 140,000 b/d Pearl GTL (gas-to-liquids) plant and two LNG production trains. Shell estimates it will take around a year to repair the facility while QatarEnergy has said it would need three-to-five years to repair the damaged LNG assets (MEES, 20 March). (CONTINUED - 897 WORDS)
