The Iran war has caused up to $58 billion worth of energy infrastructure damage, according to estimates released Wednesday by consulting firm Rystad Energy.
Iran has targeted oil and gas infrastructure in the Gulf Arab states, including production facilities, refineries, and pipelines. Israel bombed Iranian natural gas and petrochemical facilities.
International Energy Agency Director-General Fatih Birol said a total of more than 80 energy facilities have been attacked since the United States and Israel began their war against Iran on February 28. More than a third of them have been seriously damaged, Birol said.
“This is one of the most serious problems and it is different. Many facilities are severely damaged,” the IEA chief said at an Atlantic Council event in Washington on Monday. He said it could take up to two years to repair the facility and return oil and gas production to pre-war levels.
Rystad estimates the cost to repair the damage will be at least $34 billion. The extent of damage at some facilities is not yet clear, the company said. The final bill will depend on whether the damage to these assets is more limited or structural.
At the same time, the amount of equipment needed for repair work will strain the global energy supply chain, said Karan Satwani, senior analyst for supply chain research at Rystad.
Iran’s infrastructure has absorbed the biggest hit, with Rystad estimating that repair costs could reach $19 billion. Qatar also faces significant costs following Iran’s attack on its main liquefied natural gas (LNG) facilities.
Attacks on energy facilities escalated after Israel bombed Iran’s South Pars natural gas facility on March 18. Iran retaliated by attacking the world’s largest LNG facility in Qatar, damaging two production lines responsible for 17% of the small Gulf nation’s gas exports.
Damage to Qatar’s LNG facilities has cost $20 billion in lost revenue and will take as long as five years to repair, state-run Qatar Energy said in a statement on March 19.
Iran also attacked pipelines, refineries, and production facilities in Saudi Arabia, Kuwait, and the United Arab Emirates.
