Rising electricity prices in Singapore: How the Qatar gas hub attack is driving this

So how exactly is the disruption feeding through to electricity prices here, and what happens next?

Why is Qatar’s Ras Laffan hub significant?

Qatar is one of the world’s top LNG producers, alongside the United States, Australia and Russia.

Ras Laffan sits at the centre of Qatar’s LNG exports, meaning any disruption there can quickly tighten global supply.

The CEO of state-run QatarEnergy said on Thursday that the latest attacks would slash Qatar’s LNG export capacity by 17 per cent for up to five years, costing an estimated loss of US$20 billion in annual revenue.   

“This means that we will be compelled to declare force majeure for up to five years on some long-term LNG contracts,” the minister added, using the legal term for events beyond a supplier’s control that prevent it from fulfilling contracts.

Iran’s attack on Qatar’s Ras Laffan facility has pushed up gas prices in both Europe and Asia, even for countries that do not import LNG directly from Qatar, said Mr Tom Marzec-Manser, director of Europe Gas & LNG at energy consultancy Wood Mackenzie.

“While we are currently in an LNG supply wave, the market is now 12mt (million tonnes) shorter than anticipated for the next few years due to the damage that has been sustained at the plant,” he told CNA.