Deadly blast at Qatar's Ras Laffan LNG complex leaves 13 dead

(Bloomberg) – Qatar said it doesn’t expect liquefied natural gas exports to be impacted by an explosion at the Ras Laffan industrial complex which left 13 dead and 66 injured.

Production has been halted at the world’s largest LNG facility since the first week of the war after an Iranian attack, triggering cancellations. The Ras Laffan complex exported almost a fifth of global seaborne supply last year and its restart is being closely watched by gas traders around the world.

“QatarEnergy LNG facilities, Ras Laffan port, other logistical operations remain unaffected as a result of this explosion and fire and this will not affect in any way our export capabilities,” Saad al-Kaabi, Chief Executive Officer of operator QatarEnergy, said at a press conference in Doha on Monday. 

He added that an investigation into the accident has begun. The company also said local supply remains ample and isn’t expected to be affected.

The explosion and fire at the Barzan local gas supply facility on Sunday raised concerns about potential delays to restarting the Ras Laffan facility. The two damaged LNG trains require specialist cryogenic equipment and the timeline for repair is between three and five years.

After it was forced to declare force majeure, QatarEnergy is eager to regain its reputation as a reliable supplier. Restarting operations is a complex process that requires carefully balancing pressure to avoid damage and leaks. Qatar is seeking to resume 80% of LNG production at Ras Laffan within two months of Hormuz safely opening. 

With some ships starting to move through the Strait, Qatar is also making preparations. Four tankers—either owned by Qatar’s shipping arm or under long-term charter with the country—were heading toward Ras Laffan through the Strait without hiding their location, according to ship-tracking data compiled by Bloomberg as the nation rushes to bring home more empty tankers as they prepare to restart shipments. 

European gas futures, a global benchmark, steadied after the comments on Qatar exports, paring earlier gains of as much as 3.9%.