QatarEnergy says Hormuz crisis may delay LNG expansion projects
QatarEnergy expects the first train of its North Field East (NFE) liquefied natural gas expansion project to start production in the first half of 2027, but additional trains will depend on the Strait of Hormuz crisis. Disruptions caused by the effective closure of the strait since the US and Israel began their war on Iran threaten to push back part of the world’s largest LNG expansion project at…
QatarEnergy anticipates the initial train of its North Field East liquefied natural gas expansion to commence production by mid-2027; however, the timing of subsequent trains hinges on the ongoing Strait of Hormuz crisis. Disruptions stemming from the strait's effective closure due to the US and Israel's conflict with Iran could delay a portion of the Middle East's most extensive LNG expansion project, which is crucial for Qatar as they strive to replace volumes lost after attacks on their Ras Laffan export hub.
During a speech at the Qatar Economic Forum Special Edition in New York, QatarEnergy CEO Saad al-Kaabi, who concurrently serves as the minister of state for energy affairs, revealed that the necessary equipment for the expansion is still unable to reach the nation owing to the Strait of Hormuz disturbances. Meanwhile, Nigeria's NLNG plans to inaugurate Train 7 of its LNG project by the end of 2027, while the North Field South expansion is projected to begin operations in 2028.
Kaabi elaborated that multiple LNG trains intended for the NFE expansion are slated for launch during 2027, with the North Field South expansion expected to commence production in 2028. Qatar is still grappling with the aftermath of attacks on Ras Laffan, which obliterated 17% of the country's LNG capacity. Repairs for these trains could take up to three years, while one gas-to-liquids (GTL) plant is on track to complete repairs in the first quarter of 2027.
Despite the setbacks, Qatar anticipates resuming regular gas operations within weeks once the Strait of Hormuz reopens, according to Kaabi. He affirmed that QatarEnergy is currently generating minimal LNG output. When questioned about reports suggesting Qatar is purchasing LNG from the open market, Kaabi affirmed that QatarEnergy is intensifying its trading activities and aims to become "the largest LNG trader in the world by far" in the near future.
Rumors regarding Iraq's SOMO offering crude for loading inside Hormuz have surfaced, with sources indicating QatarEnergy has responded to such offers through tenders. Kaabi stated that while neighboring countries have extended pipelines through their territories as an alternative to exports through the Strait of Hormuz, Qatar has declined this option due to commercial and technical considerations.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
