Gulf energy infrastructure faces at least $25 billiob repair bill after war damage
LNG plants, refineries and terminals hit, disrupting global oil and gas supply
Qatar’s Ras Laffan sees 17% capacity loss, with recovery taking up to five years
Iran’s South Pars faces slower recovery due to supply chain constraints and sanctions
Analysts say structural bottlenecks, not just funding, will shape recovery timelines
Beyond the staggering human cost of thousands of deaths, the conflict in West Asia is also levelling the region’s energy structures. Analysis by Rystad Energy indicates that damage to oil and gas infrastructure has reached at least $25 billion, warning that restoration for some facilities could take months, if not years.
The conflict has disrupted global energy supply, with damage reported to liquefied natural gas (LNG) trains, refineries, fuel terminals and gas-to-liquids facilities across the region.
Spending is expected to be driven primarily by engineering and construction, followed by equipment and materials, though the final bill could rise as assessments continue, Rystad Energy said in a statement on March 25, 2026.
One of the most severe impacts has been at Qatar’s Ras Laffan Industrial City, where the destruction of two LNG trains has reduced capacity by around 17 per cent, or 12.8 million tonnes per year. Recovery could take up to five years, Rystad said, due to limited global supply of key gas turbines, which already face production backlogs of two to four years.
“The Gulf region’s recovery will be defined less by financial capital and more by structural constraints,” said Audun Martinsen, head of supply chain research at Rystad Energy. “While some assets may be restored within months, others could remain offline for years.”
Iran’s South Pars gas field and Qatar’s Ras Laffan facility were identified as particularly concerning cases by Martinsen. Iran’s legal exclusion from Western supply chains means it will have to rely on Chinese and domestic contractors — a technically feasible approach that could be slower and more expensive. Urgent repairs are likely to take precedence over planned expansion, Rystad warned.
In Bahrain, the BAPCO Sitra refinery was struck twice, damaging key processing units and forcing a halt to operations. The site had only recently completed a $7 billion modernisation programme, and the destruction of newly commissioned units is expected to delay revenue and increase repair costs.
Elsewhere, moderate disruptions have been reported in the United Arab Emirates, Kuwait, Iraq and Saudi Arabia.
Analysts said recovery timelines will depend heavily on local engineering capacity and supply chains. Saudi Arabia’s rapid restart at Ras Tanura, where maintenance teams were already present, highlighted the advantage of strong domestic capability.
Operators are now expected to prioritise repairs to existing facilities over new developments, with early work focusing on inspections and engineering, followed by equipment replacement and reconstruction as supply constraints ease.