QatarEnergy to begin LNG expansion operations in November

QatarEnergy is set to begin operations for the first liquefied natural gas (LNG) train under its North Field East expansion project in November. While the train is expected to start production in the first quarter of 2027, the milestone marks a significant step for the world’s largest LNG expansion project as Qatar attempts to recover from capacity losses caused by attacks on the Ras Laffan facility.

To support its operations, state-owned QatarEnergy has secured a $3 billion, five-year loan from a group of Chinese banks, including the Bank of China, Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), and China Construction Bank (Asia). The funds are intended for general working capital as the company navigates shipping disruptions.

Qatar’s LNG exports have been severely impacted by the ongoing conflict involving Iran, which has led to a blockade of the Strait of Hormuz. The company has extended force majeure on LNG deliveries to Asia and Europe through the end of November. Calculations indicate that Qatar has lost approximately $24 billion in sales as exports fell by as much as 96% following the disruption to the chokepoint.