World’s Largest LNG Site Suffers Heavy Damages After Massive Explosion

Qatar’s Ras Laffan plant closed earlier this month after an Iranian drone attack, the first interruption to supply in three decades of operation. Now, after further hits — in retaliation for an Israeli strike on the vast South Pars fields on Wednesday — the wider complex has suffered what Qatar describes as extensive damage, potentially significantly delaying any return to normality. Neither the scale of destruction nor the extent of repair work required for resumption is clear. But every day the operation isn’t running, the energy strain on economies across the world increases. For emerging nations, vital growth markets for LNG, a second gas calamity in four years is already destroying industrial demand — perhaps irreparably. Three weeks of conflict in the Middle East have upended the entire energy supply chain. With the vital Strait of Hormuz all but closed, gasoline and jet fuel prices are surging, cooking gas shortages are triggering fistfights in India and farmers are fretting about diesel and fertilizer. But with virtually no spare capacity, no strategic reserves and no easy replacements, LNG may be one of the most acute pain points in an expanding crisis.The longer this continues, the only solution is for the world to use less gas — and that’s a major setback for a fuel promoted by the industry as a reliable and affordable bridge from dirty coal to full reliance on renewable power. Without gas, power plants curtail output, fertilizer and textile factories shut. The ripple effect from a long-term shock could be even more significant than the 2022 energy crisis, when Russia’s invasion of Ukraine forced dramatic changes in global gas flows. “We are now well on our way to a doomsday gas crisis scenario,” said Saul Kavonic, energy analyst at MST Marquee. “Even once the war ends, the disruption to LNG supply could last for months or even years — depending how long it takes to repair the damage.”