The ongoing Middle East war has severely impacted Qatar's oil and gas operations, leading to a complete suspension of offshore contracting work due to heightened security concerns over potential drone and missile strikes. This decision has brought billions of dollars' worth of projects to a halt.

Impact on LNG Operations and Infrastructure

QatarEnergy's entire 77 million tonnes per annum liquefied natural gas (LNG) capacity is currently offline following attacks by Iran. The missile strikes earlier this month caused extensive damage to LNG facilities at Ras Laffan Industrial City (RLIC), specifically damaging two liquefaction trains (Train 4 and Train 6) with a combined capacity of 12.8 million tpa. This damage could take up to five years to repair. The attacks also targeted the Pearl gas-to-liquids facility, with one train so badly damaged it will likely be offline for at least a year. The financial impact is estimated at about $20 billion per annum in lost revenue, wiping out 17% of the country's LNG export capacity.

Suspension of Offshore Projects

In response to the escalating security situation, QatarEnergy has suspended all offshore construction, installation, and commissioning activity. This suspension has impacted several major projects, including:

• The North Field expansion
• The North Field Sustainability project
• The Bul Hanine expansion
• Expansion work at the Al-Shaheen field

With offshore operations at a standstill, vessels are lying idle as companies lack permission to work. However, some onshore fabrication work for offshore projects continues unaffected at fabrication yards.

Affected Contractors and Future Outlook

The suspension has impacted key international contractors, including McDermott International (US), Saipem (Italy), Larsen & Toubro (India), and COOEC (China), along with several smaller contractors. While the situation is described as uncertain, one industry source suggested the suspension is temporary and some work could restart within weeks if the situation normalizes. The attacks followed Iran's identification of Ras Laffan Industrial City as one of five potential targets after its own South Pars gas field was struck.