RIYADH: Energy infrastructure repair and restoration bills across the Middle East could reach at least $25 billion, according to a new analysis as the cost of the Iran conflict continues to grow.
Independent energy research company Rystad Energy made the claim after considering the reported damage and shutdowns affecting liquefied natural gas trains, refineries, fuel terminals and critical gas-to-liquids facilities across the region.
The firm warned that Qatar’s Ras Laffan Industrial City, which has seen the destruction of LNG trains and a 17 percent capacity reduction, could take up to five years to make a full recovery.
QatarEnergy, which owns the site, has been one of a number of energy companies in the region to trigger force majeure clauses since the conflict began on Feb. 28.
Audun Martinsen, head of supply chain research at Rystad Energy, warned that the Gulf region’s recovery will be defined less by financial capital and more by structural constraints.
“While some assets may be restored within months, others could remain offline for years,” he said, adding: “Beyond the status of the Strait of Hormuz, every day of damaged or shut-in infrastructure pushes pre-war production capacity further out of reach.”
Another costing came from the CEO of container shipping company Hapag-Lloyd.
Rolf Habben Jansen told news broadcaster ntv that his firm faces additional costs of $40 million to $50 million a week due to the Iran crisis.
“We can’t just brush that off easily,” he said, adding that the extra costs will likely be passed on to customers.
