The cost of repairing energy infrastructure in the Middle East is rising fast. And early estimates suggest it could cross $25 billion.
According to Rystad Energy, the actual figure may go even higher as more damage is assessed. The ongoing conflict has hit key oil and gas assets across the region.
Middle East energy infrastructure damage and repair costs rise
The war has caused serious disruption to global energy supply. Several critical facilities have been damaged or shut down.
These include LNG plants, refineries, fuel terminals, and gas to liquids units. The damage is widespread and complex. Repair costs will largely come from engineering and construction work. Equipment and materials will also take a big share.
One of the biggest concerns is Ras Laffan Industrial City in Qatar. Damage to key LNG units has cut capacity by about 17%, equal to nearly 12.8 million tonnes per year.
Restoring this facility will not be easy. Experts say it could take up to 5 years. A major issue is the shortage of gas turbines needed for LNG operations. Only a few global manufacturers supply them, and they already have long backlogs.
Gulf energy recovery faces delays due to supply chain limits
Recovery in the region will depend more on supply chain capacity than money. Some facilities may restart within months. But others could take years due to equipment shortages and technical complexity.
Strait of Hormuz remains a key risk factor. Any disruption here can delay recovery even further.
In Iran, the situation is more complicated. Due to sanctions, the country cannot rely on Western contractors. It will depend on domestic and Chinese firms, which may slow down progress and increase costs.
Other countries like the UAE, Kuwait, Iraq, and Saudi Arabia have seen smaller levels of damage, but still face disruptions.
Bahrain refinery damage adds pressure to recovery timeline
Another major case is unfolding in Bahrain. The BAPCO refinery in Sitra was hit twice, damaging key units.
This is especially problematic because the refinery had just completed a $7 billion upgrade. The damage has wiped out newly added capacity and delayed expected revenue.
Repairing it will not be simple. Contractors will need to return under risky conditions. Costs are also likely to rise due to war related uncertainties and insurance challenges.
One important factor in recovery is local capability. Countries with strong domestic engineering networks can restart faster. For example, Saudi Aramco managed a quick restart at Ras Tanura because local teams were already on site.
Overall, the region now faces a long recovery path. The focus will be on fixing existing assets first rather than building new ones.