Qatar’s liquefied natural gas sector has entered a prolonged disruption after Iranian strikes damaged critical facilities at Ras Laffan, forcing QatarEnergy to warn that part of its export capacity could remain offline for three to five years. According to Reuters, the attacks knocked out about 17% of Qatar’s LNG export capacity, equal to 12.8 million tonnes per year, and could cause roughly $20 billion in annual lost revenue. The development has sharply raised concerns over supply security for major buyers in Asia and Europe, including India, China, South Korea, Italy and Belgium.

Ras Laffan damage widens the fallout beyond LNG

The damage at Ras Laffan is not limited to LNG alone. Reuters reported that at least two of Qatar’s 14 LNG trains and one gas-to-liquids facility were hit, with broader losses expected in condensate, liquefied petroleum gas, helium, naphtha and sulphur output. QatarEnergy chief executive Saad al-Kaabi said condensate exports could fall about 24%, LPG by 13%, helium by 14%, and both naphtha and sulphur by 6%. That means the effects are likely to spread far beyond utility fuel markets, reaching industries from restaurants in India that rely on LPG to South Korean chipmakers that use helium.

QatarEnergy force majeure puts long-term buyers under pressure

QatarEnergy has already declared force majeure on some long-term LNG supply contracts, and Reuters reported that contracts affecting buyers in Italy, Belgium, South Korea and China are among those exposed. The company has also said a broader halt in output could last years, depending on when hostilities end and when repair work can fully begin. The same Reuters reporting said the North Field expansion project is also on hold and may be delayed by more than a year, compounding concerns about future supply growth.

India Qatar gas link comes into sharper focus

For India, the disruption matters because Qatar is a major supplier in the country’s imported gas mix. A Petroleum and Natural Gas Regulatory Board support document published in 2025 said Qatar accounted for about 42% of India’s LNG import sources at that time, making the India Qatar gas relationship particularly important for fuel security. In practical terms, a prolonged Qatar LNG disruption could tighten availability and keep imported gas expensive for Indian buyers, even where cargoes are redirected from other suppliers.

South Korea and Europe are also exposed, though in different ways

South Korea has acknowledged uncertainty but has publicly sought to calm fears of an immediate supply crunch. Reuters reported on March 20 that Seoul said its direct reliance on Qatari LNG in 2026 was about 14% and that inventories were above mandatory reserve levels, while contingency steps could include leaning more on coal and nuclear power. Europe faces a different problem: even where direct dependence is lower, reduced Qatari cargoes can intensify competition for spot LNG and push prices higher across the region. Reuters reported that European gas prices surged as much as 35% on March 19, while a separate Reuters analysis said the European Union gets about 9% of its LNG from Qatar and now faces tighter market conditions.

Iran LNG attacks are reshaping global energy risk

The latest Iran LNG attacks are being viewed as more than a one-off shock. Reuters reported that the wider conflict has already created one of the most serious Middle East energy disruptions in decades, with Qatar particularly vulnerable because it relies heavily on Gulf export routes and because its damaged infrastructure is highly concentrated. Analysts cited by Reuters also said prolonged disruption could push buyers in Japan and elsewhere to secure more supply from North America and other non-Middle East sources.