North Field East LNG output expected in H1 2027: Al Kaabi

Qatar anticipates the first output from its large-scale liquefied natural gas (LNG) expansion in the first half of 2027, as reported by Al Kaabi, the Minister of State for Energy Affairs at the Qatar Economic Forum in New York. The first production train at North Field East, the initial phase of Qatar's LNG expansion, is expected to become operational in 2027, although Bloomberg previously stated a 2026 start date.

Al Kaabi cited potential delays for additional trains due to the ongoing disruptions in the Strait of Hormuz, which could hinder the timeline for the North Field South project, slated to come online in 2028.

Al Kaabi emphasized that the Hormuz Strait's status is crucial for the successful completion of the LNG expansion, stating that delays in shipping could impact the project's schedule. The closure of the Strait of Hormuz due to the Iran war has already led to a significant increase in global LNG prices, as Qatar, the world's second-largest exporter, experiences reduced supply. Despite the disruptions, Qatar maintains that the waterway will remain essential, and the government has decided not to build bypass pipelines.

Ras Laffan, a key player in Qatar's LNG expansion, can potentially resume operations at undamaged sections of its facility within a couple of weeks once the Hormuz Strait reopens. However, the attack on the plant in February damaged about 17 percent of it, which will require years to repair. Currently, Qatar is exporting a minimal amount of LNG through the strait, but the country is shifting towards becoming a larger LNG trader, with the launch of its Golden Pass export facility in the US.

Al Kaabi expressed Qatar's ambition to become the world's largest LNG trader in the near future, stating that the country is building its position accordingly. The government of Qatar sponsored the Qatar Economic Forum, a Bloomberg initiative.