Shell’s Pearl GTL Plant Suffers Missile Strike, $750m Revenue at Risk
Shell faces a $750m hit after one of two gas processing trains at its Pearl GTL plant in Qatar was damaged by an Iranian missile strike. Repairs will take about a year, threatening the facility that contributed $750m to Shell’s revenues last year.
1. Missile Strike Impact
The Iranian missile strike on the Pearl GTL plant in Qatar’s Ras Laffan Industrial City damaged one of the facility’s two gas processing trains, including critical cryogenic air separation units. Located 42 miles north of Doha and connected to the North Field, the plant produces premium synthetic fuels such as jet fuel and specialty lubricants.
2. Revenue and Production Risk
The damaged train accounted for approximately $750m in revenue last year, placing a core high-margin earnings pillar at risk. This facility has been central to Shell’s gas-to-liquids strategy, converting natural gas into high-purity liquid products.
3. Repair Timeline and Market Outlook
Shell expects to complete full repairs in about a year, with half of production potentially restartable once regional tensions ease. While complex specialised equipment may extend restoration timelines, elevated oil and gas prices could mitigate some of the lost cash flows.