Air strikes damage key gas infrastructure

The Israeli strikes on Iran’s South Pars gas field and Iran’s retaliatory strike on the Ras Laffan LNG liquefaction facilities in Qatar mark a new phase in the conflict between the United States, Israel and Iran.
The destruction of major energy infrastructure goes beyond the closure of the Strait of Hormuz and will have long-term repercussions on the global natural gas market. Oil facilities have also been targeted.
The Iranian South Pars gas field is primarily for domestic use and accounts for between 70 and 75 per cent of Iran’s gas consumption. Gas accounts for between 80 and 85% of Iran’s electricity generation.
The Iranian strikes are reported to have seriously damaged the Ras Laffan natural gas liquefaction facilities. It is estimated that 17% of total capacity (106 billion cubic metres), or 18 billion cubic metres, is out of service and would require several years of repairs to be restored.
Qatar had planned to add 68 billion cubic metres of new liquefaction capacity by 2030, including 48 billion cubic metres in 2026–2027. The commissioning of these new facilities will clearly be delayed.