Hormuz Crisis Halts Qatar's LNG Expansion Plans

The ongoing crisis in the Strait of Hormuz has put Qatar's liquefied natural gas (LNG) expansion projects on hold, according to Saad al-Kaabi, CEO of QatarEnergy. The company is currently producing a 'very minute' volume of LNG due to equipment that cannot reach Qatar.

The North Field East (NFE) and North Field South (NFS) expansions, which were set to begin production in 2027 and 2028 respectively, have been delayed. Critical equipment needed for these projects is unable to transit through the Strait of Hormuz due to increased tensions in the region.

The Strait of Hormuz, a crucial waterway for global energy trade, has seen a significant decrease in traffic since the US-Israeli war with Iran began on February 28. On average, about 125 large commercial vessels per day used to transit through the strait before the conflict escalated.