QatarEnergy CEO Saad al-Kaabi revealed he repeatedly warned U.S. Officials and energy industry executives about the potential for escalating conflict in the Middle East and the vulnerability of energy infrastructure to attack. The warnings came before an Iranian attack targeted Qatar’s Ras Laffan Industrial City, a critical hub for global liquefied natural gas (LNG) production.
“I always warning, talking to executives from oil and gas that are partnered with us, talking to the US Secretary of Energy [Chris Wright], to warn him of that consequence and that that could be detrimental to us,” al-Kaabi said in an exclusive interview with Reuters.
The attack on Ras Laffan, the world’s largest LNG complex, has disrupted energy supplies and raised concerns about wider regional instability. The incident underscores the interconnectedness of global energy markets and the potential for geopolitical events to impact supply.
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Approximately 17% of Qatar’s LNG export capacity has been lost as a result of the attack, with full recovery potentially taking months or even years. This delay as well impacts Qatar’s plans for expanding its gas production.
As a major supplier of gas to both Europe and Asia, disruptions to Qatar’s exports could lead to increased global energy prices. The situation highlights the vulnerability of energy infrastructure in the region and the potential for further escalation.
Al-Kaabi stated that approximately 10,000 offshore workers were evacuated within 24 hours of the anticipated attack, preventing any casualties. He also emphasized that he had repeatedly cautioned U.S. Officials and international oil and gas industry partners about the potential for a domino effect if Iranian energy facilities were targeted first.
The attacks on energy facilities are not limited to the gas sector and are contributing to a slowdown in economic activity across the Gulf region, impacting tourism, trade, and government revenue. The conflict is raising fears of a broader energy crisis, given the world’s reliance on the stability of the region for oil and gas supplies.
According to al-Kaabi, a swift restoration of gas production is unlikely without a cessation of hostilities. Qatar requires a de-escalation of the conflict before it can start repairing the damaged facilities and resuming normal energy exports.
(eds/eds)
