Ras Laffan shocks energy markets
Attacks on Ras Laffan have sent international gas benchmarks (JKM, TTF) sharply higher and pushed oil to roughly $115–116/barrel in Asian trade, sparking market volatility and regional equity routs. South Korea is even discussing driving restrictions if oil breaches $120, underscoring the industrial ripple effects. (markets.financialcontent.com) (tribuneindia.com) (x.com)
QatarEnergy said missile strikes on Ras Laffan on March 18–19 caused “extensive damage,” cutting LNG export capacity by about 17%, with repairs that could take up to five years and an estimated ~$20 billion annual revenue loss. (qatarenergy.qa) Two of Ras Laffan’s 14 liquefaction trains — S4 and S6 — plus one gas‑to‑liquids unit were taken offline, a disruption QatarEnergy’s CEO said will sideline roughly 12.8 million tonnes per year of LNG. (tbsnews.net) Market trackers put the immediate supply hole at different levels (about 12.8 Mtpa in QatarEnergy’s tally versus Kpler’s estimate of up to ~19 Mt through May), triggering a global spot‑cargo bidding war as buyers scramble for replacement volumes. (tbsnews.net) QatarEnergy has declared force majeure on some long‑term LNG contracts, specifically flagging affected customers in Italy, Belgium, South Korea and China in notices made public on March 24. (aljazeera.com) Traders re‑priced Europe’s front‑month curve aggressively — April TTF opened about 27% higher and briefly touched near €74/MWh on the initial shock — a sign markets are pricing in a sustained structural shortfall. (timera-energy.com) ExxonMobil is a partner in the damaged trains (holding roughly 34% of S4 and 30% of S6), concentrating corporate exposure to multi‑billion‑dollar asset and contract disruptions while downstream products (condensate, LPG, helium) also face output cuts. (globallnghub.com) Asia’s JKM benchmark jumped into the low‑$20s/MMBtu range after the strikes while U.S. Henry Hub prices remained far lower, creating an arbitrage that is accelerating re‑routing of U.S. LNG cargoes to Asia where shipping and terminal capacity allow. (journal.jogmec.go.jp)
