Iran strikes world’s largest LNG hub in Qatar, missiles fired; 20% global supply at risk

New Delhi (The Uttam Hindu): Qatar's Ras Laffan Industrial City has suffered extensive damage amid a surge in attacks on energy facilities in the Persian Gulf region. The city is home to the world's largest liquefied natural gas (LNG) export hub, providing around 20% of global supply before production was halted earlier this month.

Qatari officials said late Wednesday that four missiles were successfully intercepted, but a fifth missile landed in Ras Laffan. However, the plant was evacuated before the attack and all employees are safe. According to Qatar Energy, the fire has been brought under control.

Qatar's Foreign Ministry described the attack as a "dangerous escalation" and a serious violation of the country's sovereignty. In response Qatar ordered the relevant officials including Iran's military and security attaches to leave the country within 24 hours.

Earlier, tanker traffic in the region was disrupted following US and Israeli attacks on Iran leaving Ras Laffan virtually cut off from the world. This month, a drone attack forced a production halt and Qatar Energy declared force majeure adding to the volatility in the global LNG market.

Asia and Europe are being hardest hit, as these regions rely on imported gas for power generation. The new attacks have raised questions about how long it will take for supplies to return to normal even after sea routes reopen.

Meanwhile, Abu Dhabi also shut down its Habshan gas plant as a precautionary measure, citing damage caused by debris from the attacks. Another attack struck Ras Laffan on Thursday morning, sparking another fire. Efforts are underway to control the blaze.

Tensions in the region are constantly rising. Israel recently attacked Iran's South Pars gas field, sending crude oil and gas prices soaring. Iran has warned that energy installations in Qatar, Saudi Arabia, and the United Arab Emirates are also potential targets.

According to energy analyst Tom Marzec-Mancer, the attack on Ras Laffan was the biggest risk to the global gas market. While it's not yet clear which part of the industrial complex was most affected, the impact on the market is certain.

Brent crude oil prices rose 8% to $111.90 a barrel following the attack. Abu Dhabi officials said there were no casualties at the Habshan plant, one of the world's largest onshore gas processing plants, with a daily production capacity of more than 60 billion cubic feet.

Meanwhile, Saudi Arabia also claimed to have thwarted a drone attack targeting a gas facility in its eastern region. In a separate incident, ballistic missile debris fell near a refinery in southern Riyadh. Ras Laffan Industrial City covers an area of approximately 295 square kilometers and houses a gas-to-liquid plant, storage facilities, a condensate splitter, and an oil refinery, in addition to LNG processing.