QatarEnergy Liquefied Natural Gas (LNG) Expansion Faces Hormuz-Linked Delays

QatarEnergy’s multi-phase liquefied natural gas (LNG) expansion—North Field East (NFE), North Field South (NFS) and future phases—relies on equipment that must transit the Strait of Hormuz. Ongoing disruptions to that waterway have halted shipments, prompting the company’s chief executive Saad al-Kaabi to warn that additional production trains could be postponed beyond their original schedules. The first NFE train is still slated for the first half of 2027, while NFS remains targeted for 2028.

QatarEnergy Warns: Hormuz Crisis Could Delay LNG Expansion Projects

The crisis began after the United States and Israel launched a war against Iran on February 28. The conflict has effectively closed the Strait of Hormuz, a chokepoint that previously handled about 125 large, commercial vessels per day — as reported by Middle-East-Online. Qatar’s Ras Laffan export hub was also struck in the early weeks of the war, destroying 17 % of the country’s LNG capacity, damaging two LNG trains, and impairing a gas-to-liquids (GTL) plant. Repairs to the trains are projected to take three years, while the GTL facility is expected to resume operation in the first quarter of 2027.

Hormuz crisis puts Qatar’s LNG expansion on hold

• Capacity increase: NFE aims to raise output by 42.9 % to 110 million metric tons per year across four trains.

QatarEnergy Warns: Hormuz Crisis Could Delay LNG Expansion Projects

• Long-term goal: Combined phases (NFE, NFS, North Field West) target a national production level of 142 million metric tons per year.

QatarEnergy Warns: Hormuz Crisis Could Delay LNG Expansion Projects

• Current output: QatarEnergy is producing only a “very minute” volume of LNG while the crisis persists.

Reuters

• Vessel traffic: Kpler analytics showed a drop from 35 vessels transiting the strait one weekend to 12 the next; on a recent Sunday, four vessels (two oil product tankers and two empty bulk carriers) exited, while two small oil tankers entered.

Hormuz crisis puts Qatar’s LNG expansion on hold

Al-Kaabi also dismissed proposals to route pipelines through neighboring countries, citing “commercial and technical grounds.” Regarding the Golden Pass LNG joint venture with Exxon Mobil in Texas, he noted that its second and third trains are expected to be fully operational in 2027, producing 18 million metric tons per year when complete.

Reuters

Shipping data compiled by analytics firm Kpler indicated that, despite the sharp decline, a limited number of vessels continue to move through the strait, with commodity carriers still delivering refined oil products and bulk goods. The reduced flow underscores the strait’s role as a conduit for roughly one-fifth of the world’s oil and LNG before the conflict.

Hormuz crisis puts Qatar’s LNG expansion on hold

• “We will be, in the very near future, the largest LNG trader in the world by far,” — Saad Sherida Al-Kaabi, qatarenergy CEO

The Straits Times

Al-Kaabi indicated that normal LNG shipments could restart “within a couple of weeks” after the strait reopens, but he offered no specific date for that reopening. The company’s timeline for the remaining NFE trains and the NFS phase remains contingent on the duration of the Hormuz shipping restrictions.

Reuters