Hormuz Crisis Halts Qatar's $200 Billion LNG Expansion Plans
The ongoing crisis in the Strait of Hormuz has put Qatar's liquefied natural gas (LNG) expansion plans on hold, according to Saad al-Kaabi, CEO of QatarEnergy. Critical equipment necessary for the project cannot reach Qatar due to the heightened tensions in the region.
QatarEnergy is currently producing only a 'very minute' volume of LNG, Kaabi said at the Qatar Economic Forum in New York. The company's North Field East (NFE) expansion projects are expected to start up in 2027, with the North Field South (NFS) expansion set to begin production in 2028.
The Strait of Hormuz has seen a significant reduction in vessel traffic, with only a dozen commodity vessels transiting through it over the weekend, down from 35 the prior week. This is a stark contrast to the typical 125 large commercial vessels that passed through the strait daily before the US-Israeli war with Iran began on February 28.