Key facts
- Qatar's LNG export capacity has been reduced by 17% due to damaged production and processing facilities.
- Full repairs on damaged liquefaction trains in Qatar are expected to take up to three years.
- QatarEnergy has delayed the launch of its North Field East project to the first half of 2027.
- Force majeure declarations on contracted Qatari LNG supplies have been extended into November 2026.
- China Gas Holdings signed a 20-year LNG sales and purchase agreement with U.S. exporter Venture Global LNG.
- PETRONAS, PTTEP JDA, and the Malaysia-Thailand Joint Authority formalized a 35-year production-sharing contract in the Gulf of Thailand.
- Timor-Leste plans two new greenfield LNG plants, one supplied by the Greater Sunrise fields and another using remaining gas from Bayu-Undan.
- Energy prices, including oil, fell sharply as U.S. President Donald Trump indicated openness to a meeting with Iranian President Masoud Pezeshkian.
Liquefied natural gas (LNG) buyers are actively seeking to diversify their supply sources amid disruptions to Gulf shipments, exacerbated by damage to Qatar's export infrastructure. The conflict has led to a significant reduction in Qatar's LNG export capacity, prompting a search for alternative supplies and reviving interest in projects across Argentina, Timor-Leste, and Tanzania.
Qatar's North Field and Iran's South Pars gas formation, which holds a substantial portion of the world's gas resources, have both been impacted by strikes. These incidents have reduced Qatar's LNG export capacity and limited gas availability for Iran's domestic market. WoodMac estimates that repairs to Qatar's damaged liquefaction units could cost approximately $5.8 billion and take up to three years, with full repairs expected to extend the launch of new production units to the first half of 2027. Force majeure declarations on contracted supplies have been extended into November 2026.
In response to these supply concerns, buyers are exploring options from North America to Southeast Asia. China Gas Holdings has secured a 20-year LNG sales and purchase agreement with U.S. exporter Venture Global LNG, starting in 2030. Additionally, a 35-year production-sharing contract was formalized in the Malaysia-Thailand Joint Development Area. Timor-Leste announced plans for two new greenfield LNG plants, aiming to utilize gas from the Greater Sunrise fields and the Bayu-Undan project.
Meanwhile, energy prices saw a sharp decline as U.S. President Donald Trump expressed openness to a potential meeting with Iranian President Masoud Pezeshkian at the upcoming United Nations General Assembly. This development offered a glimmer of hope for de-escalation in the region.