Explained — How important is the attack on Gas fields of Iran, Qatar and its implications

The global energy market is reacting to a series of developments across key gas infrastructure in the Gulf.

The South Pars–North Dome gas field, the world’s largest natural gas field, has come under attack last evening.

This field holds an estimated 48 trillion cubic meters of gas, accounting for roughly 25% of global proven reserves. It forms the backbone of gas production for both Iran and Qatar and is central to global LNG supply.

At the same time, Ras Laffan Industrial City, Qatar’s main LNG export hub, has also been targeted.

Ras Laffan handles approximately 77 to 80 million tonnes per annum of LNG exports. That is close to 20% of global LNG trade, with supplies primarily moving to Asia and Europe. Any disruption here has direct implications for global gas availability.

In the UAE, gas operations have also been affected. The Habshan Gas Processing Plant has halted operations. This is a key processing hub in the UAE’s gas network, handling billions of cubic feet of gas per day. The disruption points to a broader risk to energy infrastructure across the Gulf region.

Markets have responded to these developments.

Oil prices have risen to around $115 dollars per barrel. LNG markets are also pricing in tighter supply conditions, along with the possibility of cargo rerouting.

Taken together, these events are impacting a significant portion of the global energy system.

Around 25% of global gas reserves are linked to the affected field. Nearly 20% of LNG trade flows through the impacted export hub. And close to 20% of global oil flows through this broader region.

The bigger impact is on supply timelines.

Even if the Strait of Hormuz remains operational, LNG supply from the Middle East is likely to remain constrained over the next few months due to infrastructure disruptions and precautionary shutdowns.