Major South Asian countries may be bracing for power cuts and factory slowdowns, as Iranian missile strikes caused “extensive damage” to Qatar’s Ras Laffan Industrial City, which supplies the bulk of liquefied natural gas (LNG) imports to Bangladesh, Pakistan, and India, according to CNN Live Updates.
Nearly all of Qatar’s natural gas is processed, liquefied, and exported at Ras Laffan. Pakistan and Bangladesh import around 99% and 70% of their LNG from Qatar, according to Kpler, an industry data firm. India sources over 40% of its LNG from the Gulf state, data from market intelligence firm S&P Global shows.
Nearly three weeks into the Iran war, the conflict has not only effectively shut off a critical oil and gas shipping route – the Strait of Hormuz – but has also damaged one of the world’s most important LNG facilities.
QatarEnergy, the state-owned petroleum and gas company and operator of the Ras Laffan facility, suspended production of LNG and associated products earlier this month. The missile strikes and resulting damage, however, could mean a much longer lead time before production returns to normal volumes.
Both Pakistan and Bangladesh also have limited domestic LNG reserves, estimated at around one to two weeks, making them particularly vulnerable to this ongoing supply shock. The disruption could result in power cuts and reduced industrial gas supply, according to Kpler.
CNN has reached out to the energy ministries of Pakistan, Bangladesh, and India for comment.
In East Asia, Taiwan is relatively exposed as it sources about one-third of its LNG from Qatar and holds only 11 days’ worth of reserves. Taipei, however, said last week it had secured enough supply for March and April and is working to ensure supply for May.
While Qatar also supplies large volumes of LNG to China, South Korea, and Japan, these countries are relatively insulated due to their significant stockpiles, according to Kpler. China also maintains a diverse LNG supply, allowing flexibility in its imports.