FRANKFURT, Germany (AP) — Iran’s war has put at risk some of the world’s most important oil and gas infrastructure — pipelines, refineries and shipping terminals that keep energy flowing from countries around the Persian Gulf to the global economy.
Iranian drone strikes have disrupted operations, while the threat of Iranian strikes has effectively closed the Strait of Hormuz, a route for 20% of the world’s oil and liquid natural gas. Oil fields in countries including Iraq have reduced production as reservoirs fill up. Qatar, a major supplier of liquefied natural gas, has also suspended its exports.
Torbjorn Soltvedt, a Middle East analyst at the risk intelligence firm Veersk Maplecroft, said, “A lot of critical energy infrastructure has been forced to shut down either because of direct damage from drones and missiles,” or because production has effectively shut down as a result of the shipping grind that we’re already seeing the beginning of a global shutdown.
All that raised prices, raised the cost of everything that required fuel: flying, running factories, transporting goods, and farming. International benchmark Brent crude rose to nearly $103 on Monday from $72.97 a day before the conflict began.
Here are the key infrastructures at risk and why they matter.
The terminal was closed after a drone attack by Qatar’s state-owned company, which jolted global gas markets as Qatar produces 20% of the world’s liquefied natural gas (LNG). The company refers to a force majeure – in other words, it cannot supply its contracted customers due to circumstances beyond its control.
Ras Laffan, the world’s largest LNG export facility, extracts the gas from the world’s largest unit and cools it until it is a liquid for loading into tankers that ship it to customers, mainly in Asia, according to the company’s website. Gas buyers in Europe will also feel the pinch as competition intensifies for available cargo.
Located on the Persian Gulf northeast of Dammam, it is Saudi Aramco’s largest refinery and a port capable of accommodating large tankers. It was temporarily closed after the impact of the drone caused a fire.
Saudi Aramco runs the pipeline from the Aqeq oil processing center near the Persian Gulf to the Red Sea port of Yanbu, avoiding the Strait of Hormuz.
A key terminal for large oil tankers in the Gulf of Oman, it is important because it enables Abu Dhabi to export a significant portion of its oil without going through the Strait of Hormuz. It was reported by data and analytics firm Rystad Energy as disrupted by the conflict. The port company did not immediately respond to an email seeking comment on the situation.
Analyst Soltvidat said: “Iran’s targeting of oil deposits in Fujairah is not a coincidence; This is an attack on the possible relocation of oil that is stuck in the Persian Gulf.”
The tanker terminal handles almost all of Iran’s roughly 1.6 million barrels per day of crude oil exports, most of which go to China. Iran reportedly ramped up shipments within days of the start of the war. Its operational status is unclear.
Israel’s Energy Ministry has instructed operator Chevron to shut down the field, located 130 kilometers (80 miles) off the coast of Haifa, due to the security situation. It has the largest natural gas reserves in the Mediterranean and is a key supplier to Egypt. The blockade during Israel’s 12-day war with Iran in June led Egypt to cut gas supplies to industries including fertilizer producers.
Iraq has suspended production of 1.5 million barrels of oil per day at key fields in Rumila and West Qurna. The Romilla field is a so-called supergiant, meaning it has more than a billion barrels of reserves.
Rystad Energy reports that Iraq and other Gulf countries are running out of space to replace oil, meaning more fields will be shut down. This can cause disruption because once shut down, oil and gas wells may require weeks or months to restart.
Even if the Strait of Hormuz reopens in a few days, “it will take time to restart production in these areas. It’s not a switch that can be turned on and off.” Soltidet said. “It’s the same for Qatar in terms of their LNG facilities. It will probably take a few weeks for some facilities to restart.”
This artificial island is located 50 km (30 mi) off the coast of the Persian Gulf, which exports oil worth 80% of Iraq’s annual GDP from the country’s oil fields.
The Sitra Island refinery is the backbone of Bahrain’s oil sector, processing oil from Bahrain’s fields and transporting it via pipeline to Saudi Arabia. The missile strike halted operations and disrupted jet fuel, diesel and other supplies.
