FRANKFURT, Germany (AP) — The Iran war has put at risk some of the world's most critical oil and gas infrastructure — the pipelines, refineries, and shipping terminals that keep energy flowing from the countries around the Persian Gulf to the global economy.
Strikes by Iranian drones have disrupted operations, while the effective closure of the Strait of Hormuz choke point for shipping due to risk of Iranian strikes has left some 20% of the world's
oil and liquefied natural gas with nowhere to go. Oil fields in countries including Iraq have cut back output as storage fills up. Qatar, a major supplier of liquefied natural gas, has shut down its exports as well.
“A lot of very critical energy infrastructure has been either forced to shut down because of direct damage from drones and missiles,” said Torbjorn Soltvedt, principal Middle East analyst at risk intelligence company Verisk Maplecroft, "or because production is effectively being shut in as a result of shipping grinding to a halt. We’re already starting to see some of the global ramifications of that.”
All that has sent prices soaring, raising the cost of everything that needs fuel: flying, running factories, transporting goods, and farming. International benchmark Brent crude has risen from $72.97 the day before the war started to almost $103 on Monday.
Here is the key infrastructure that's at risk and why it's important.
The terminal was shut down by state-owned QatarEnergy following a drone strike, dealing a shock to global gas markets since Qatar produces 20% of the world's liquefied natural gas (LNG). The company is citing force majeure — in other words, that it's unable to supply its contracted customers due to circumstances beyond its control.
Ras Laffan, the largest LNG export facility in the world according to the company's website, draws gas from the world's largest single gas field and chills it until it is liquid for loading on tankers that take it to customers, primarily in Asia. Gas purchasers in Europe will also feel the pinch as competition gets fiercer for available cargoes.
Located on the Persian Gulf northeast of Dammam, this is Saudi Aramco's largest refinery and a port capable of accommodating large tankers. It was temporarily shut down after a drone impact caused a fire.
Saudi Aramco operates this pipeline from the Aqaiq oil processing center near the Persian Gulf to the Yanbu port on the Red Sea, avoiding the Hormuz chokepoint.
A key terminal for very large oil tankers on the Gulf of Oman, it is important because it enables Abu Dhabi to export a significant share of its oil without sending it through the Strait of Hormuz. It has been reported as disrupted by the fighting by Rystad Energy data and analytical firm. The port company did not immediately respond to an email seeking comment about its status.
“Iran's targeting of oil storage in Fujairah isn't a coincidence; it's attacking one of the potential reroutings of oil that's been trapped in the Persian Gulf,” analyst Soltvedt said.
A tanker terminal that has handled almost all of Iran's roughly 1.6 million barrels per day of prewar crude exports, most of it going to China. Iran reportedly accelerated shipments in the days before the war started. Its operational status is unclear.
Israel's Energy Ministry directed operator Chevron to shut down the field, located 130 kilometers (80 miles) off the shores of Haifa, due to the security situation. It's the largest natural gas reservoir in the Mediterranean and is a key supplier to Egypt. A shutdown during Israel's 12-day war with Iran in June led Egypt to curtail gas supplies to industries including fertilizer producers.
Iraq has suspended output of 1.5 million barrels per day at key fields at Rumaila and West Qurna due to dwindling storage. The Rumaila field is a so-called supergiant, meaning it holds more than a billion barrels in reserves.
Rystad Energy reports Iraq and other Gulf countries are running out of space to put the oil, meaning other fields may shut down. That could bring interruption since once shut down, oil and gas wells may need weeks or months to resume.
Even if the Strait of Hormuz reopens in a few days, “it’s going to take time to restart production in some of these fields. It’s not a switch that can be turned on and off,” said Soltvedt. “It’s the same for Qatar in terms of their LNG facility. It will probably take weeks to get some of the facilities up and running again.”
This artificial island located 50 kilometers (30 miles) from shore in the Persian Gulf exports oil worth 80% of Iraqi's annual GDP from the country's oil fields.
The Sitra Island refinery is the backbone of Bahrain’s oil sector, processing supply from Bahraini fields and delivered from Saudi Arabia via pipeline. A missile strike halted operations and disrupted jet fuel, diesel and other supplies.
