Hormuz Blockage Puts Qatar's $83 Billion LNG Bet at Risk
QatarEnergy CEO and Qatar Energy Minister Saad al-Kaabi says the Strait of Hormuz crisis could delay the company's LNG expansion because critical equipment cannot reach Qatar, Reuters reported on Monday. North Field East's first production train remains on schedule for the first half of 2027, Al-Kaabi said, but additional trains are contingent on Hormuz traffic resuming and North Field South…
The Strait of Hormuz crisis threatens Qatar's $83 billion liquefied natural gas (LNG) expansion plans, according to QatarEnergy CEO Saad al-Kaabi. The company's North Field East first production train is on schedule for 2027, but additional trains depend on Hormuz traffic resuming and North Field South beginning production in 2028.
In March, Iran's missile strike on Ras Laffan Industrial City crippled two of Qatar's 14 LNG trains, eliminating 17% of the country's export capacity and an estimated $20 billion in annual revenue. Qatar is currently producing a minimal volume of LNG and may resume normal operations within weeks of Hormuz reopening. QatarEnergy is partnering with ExxonMobil's Golden Pass joint venture to boost supply, with Train 2 and Train 3 expected online in 2026 and 2027, respectively.
Al-Kaabi stated that Qatar aims to become the world's largest LNG trader, but the strike has already removed 12.8 million tons of capacity before a single new train reached full output. The company is constructing redundant facilities as part of the North Field expansion, which contradicts economic logic. Neighboring nations offered land for a route, but Qatar declined.
Since the war, LNG tankers have resumed limited transits through the Strait, and Asian and European gas prices have surged to their highest levels since the 2022-2023 energy crisis.
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