QatarEnergy Declares Force Majeure on Long-Term LNG Contracts

QatarEnergy has declared force majeure on certain long-term liquefied natural gas (LNG) contracts after an Iranian missile strike on March 18 damaged units at its Ras Laffan Industrial City, taking out roughly 17% of the complex's LNG production — about 12.8 million metric tons per annum (MTPA). The move, reported March 26, 2026, affects deliveries to customers in Asia and Europe, including South Korea, Belgium, China and Italy.

"Repairs would take three to five years," QatarEnergy Chief Executive Officer Saad al-Kaabi told Reuters after the strike, adding the disruption "would cost the company US$20 billion in annual revenue" and that the affected units "had cost approximately US$26 billion to build."

Details of the damage and contractual exposure

The missile strike disabled LNG trains S4 and S6 at Ras Laffan. Exxon Mobil Corporation holds a 34% stake in Train S4 and a 30% stake in Train S6. Industrial Info Resources reports that specific long-term offtake ties include:

• Train S4: contracts linked to Belgium's EDF Trading (EDFT) and Italy's Edison, with the latter's Italian LNG deliveries apparently affected.
• Train S6: contracts tied to Shell plc's operations in China and to Korea Gas Corporation (KOGAS) in South Korea.

Beyond LNG, the attack knocked a gas-to-liquids (GTL) unit — a joint asset of QatarEnergy and Shell — offline. That GTL unit produces about 140,000 barrels per day of products such as naphtha, kerosene, propane, butane and fuel oil; Industrial Info reports repairs could take up to a year.

Wider supply-chain impacts

The offline LNG trains have also curtailed helium production, a valuable byproduct used in semiconductor manufacturing and medical imaging. The United States Geological Survey estimated Qatar accounts for more than 30% of global helium production. Consultancy AKAP Energy's Anish Kapadia estimated that roughly 30% of Qatar's helium production could be lost in 2026, which would equate to about an 11% reduction in global helium supply.

South Korea and Taiwan — major chip manufacturers and substantial consumers of Middle Eastern helium — are exposed. Barclays data cited by Industrial Info notes that in 2025 South Korean manufacturers purchased 55% of their helium from Gulf Cooperation Council (GCC) countries; Taiwan sourced about 69% of its helium from the GCC in 2024.

Outlook

QatarEnergy's force majeure declaration signals prolonged disruption to contractual flows and a material tightening of specific product markets. With repair timelines of three to five years for the damaged LNG trains and up to a year for the GTL unit, counterparties and markets face an extended period of uncertainty. Buyers tied to affected trains — including EDF Trading, Edison, Shell and KOGAS — will need to manage shortfalls through alternative supply, spot purchases or contractual remedies.

Industry trackers such as Industrial Info Resources are monitoring the situation closely; the firm notes the affected assets represent significant supply and downstream-product exposure across Europe and Asia, reinforcing near-term risks for LNG, GTL-derived products and helium-sensitive industries.