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[BUSINESS] · Qatar, Iran, United States · 8 sources

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QatarEnergy delays LNG expansion due to Strait of Hormuz disruptions

QatarEnergy CEO Saad al-Kaabi has announced that shipping disruptions in the Strait of Hormuz are delaying the company’s liquefied natural gas (LNG) expansion projects. The first production train at the North Field East project is now expected to come online in the first half of 2027, a delay from the previously anticipated 2026 start date. The North Field South project is currently slated for 2028.

Al-Kaabi rejected predictions that the Strait of Hormuz would become obsolete, stating that the waterway remains essential. He also confirmed that Qatar will not pursue bypass pipelines to circumvent the strait, citing economic and technical impracticality, as such routes would require redundant liquefaction facilities abroad.

The energy sector faces significant challenges following military actions involving the US, Israel, and Iran, which resulted in damage to approximately 17% of the Ras Laffan plant. These disruptions have contributed to Qatar recording its highest quarterly budget deficit since 2016, totaling $5.8 billion in the second quarter. Despite these hurdles, Qatar aims to increase its annual LNG capacity from 77 million to 142 million tons by 2030 through its North Field expansion.

Entities

North Field · QatarEnergy · Ras Laffan · Saad Al-Kaabi · Saad Sherida Al-Kaabi · Strait of Hormuz

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