Key facts
- QatarEnergy CEO Saad al-Kaabi stated the Strait of Hormuz crisis could delay LNG expansion.
- The company's North Field East project's first production train is on schedule for the first half of 2027.
- Iran's March 18 missile strike knocked out two of Qatar's 14 LNG trains, removing 17% of export capacity.
- The damaged trains, with 12.8 million tons of annual capacity, are expected to be offline for three to five years.
- Shell's Pearl gas-to-liquids plant is due back in service by the first quarter of 2027.
- QatarEnergy aims to become the world's largest LNG trader.
The Strait of Hormuz crisis, stemming from Iran's missile strike on Qatar's Ras Laffan Industrial City on March 18, is jeopardizing Qatar's ambitious $83 billion liquefied natural gas (LNG) expansion plans. QatarEnergy CEO Saad al-Kaabi stated that critical equipment needed for the expansion cannot reach the country due to the blockage, potentially delaying the addition of new production trains.
The strike disabled two of Qatar's 14 LNG trains, removing 17% of its export capacity and an estimated $20 billion in annual revenue. These trains, representing 12.8 million tons of annual capacity, are expected to be offline for three to five years. Shell's Pearl gas-to-liquids plant, also hit in the attack, is slated to resume operations by the first quarter of 2027.
Despite these setbacks, the first production train of the North Field East project remains on schedule for the first half of 2027. However, subsequent trains are contingent on the resumption of traffic through Hormuz and the planned 2028 start of North Field South. Qatar is currently producing a "very minute" volume of LNG and anticipates a return to normal operations within weeks of Hormuz reopening.
QatarEnergy is leveraging its Golden Pass joint venture with ExxonMobil in Texas to bolster supply, with its Train 2 expected online in the second half of 2026 and Train 3 in the first half of 2027, bringing the facility to its 18-million-ton-a-year capacity. Al-Kaabi expressed QatarEnergy's ambition to become the world's largest LNG trader.
Al-Kaabi dismissed pipeline solutions for bypassing Hormuz due to economic and technical infeasibility, noting that neighboring countries had offered alternative routes which were rejected. LNG tankers have recently resumed limited passage through the Strait after a six-month hiatus. Asian and European gas prices are currently at their highest levels since the 2022-2023 energy crisis, with analysts predicting a further increase this winter.