Key facts
- QatarEnergy CEO Saad al-Kaabi said the Hormuz crisis may delay some expansion projects.
- Critical equipment cannot reach Qatar due to the crisis.
- QatarEnergy is currently producing a "very minute" volume of LNG.
- Some LNG trains under QatarEnergy's North Field East (NFE) expansion are due to start up in 2027.
- The North Field South (NFS) expansion is set to begin production in 2028.
- About 17% of Qatar’s LNG capacity is offline after Iranian strikes damaged two of its 14 export trains.
The crisis over the Strait of Hormuz is impacting Qatar's liquefied natural gas (LNG) expansion projects, with CEO Saad al-Kaabi stating that critical equipment is unable to reach the country, potentially delaying project timelines. QatarEnergy is currently producing only a "very minute" volume of LNG.
Al-Kaabi indicated that some LNG trains under the North Field East (NFE) expansion are scheduled to start up in 2027, and the North Field South (NFS) expansion is slated to begin production in 2028. He noted that QatarEnergy's large LNG volumes would be difficult for buyers to ignore once the Hormuz crisis concludes.
According to executives, reopening the Strait of Hormuz will not immediately restore Qatari and UAE LNG exports to normal levels. Damaged facilities and high insurance costs are expected to keep supplies constrained for months or years. Approximately 17% of Qatar’s LNG capacity is offline following Iranian strikes that damaged two of its 14 export trains, removing 12.8 million tonnes per year from the market. QatarEnergy estimates repairs will take three to five years.
Shell's Pearl gas-to-liquids plant in Qatar, which was hit by a missile, is anticipated to be back online by the end of the first quarter of 2027. Cederic Cremers, Shell’s president of integrated gas, stated that restoring marine flows will also take time, even with a reopened strait. He noted that about 36 million tonnes of Qatari and Emirati supply has been absent from the market year-to-date compared with 2025, with roughly 20 million tonnes offset by new volumes from the US and Canada.
Eni's chief operating officer for global natural resources, Guido Brusco, expressed a more optimistic view on repair timelines, suggesting the industry often reacts faster than reports indicate. He declined to forecast prices, calling gas "one of the most studied commodities and the least predictable." Asian prices have risen about 150% year-to-date, while European prices are up approximately 100%.