Hormuz Crisis Threatens Qatar LNG Expansion Plans
The crisis in the Strait of Hormuz has put a significant dent in Qatar's plans to expand its liquefied natural gas (LNG) production. According to QatarEnergy CEO and Energy Minister Saad al-Kaabi, critically important equipment cannot reach the country due to the conflict.
Al-Kaabi said that the first production line of the North Field East project is expected to begin operating in the first half of 2027. However, the launch of subsequent lines depends on the resumption of shipping through the Strait of Hormuz and adherence to the schedule for starting production at North Field South in 2028.
The conflict has already caused damage to Qatar's production lines, with two out of its 14 LNG production lines put out of operation after an Iranian missile strike on March 18. This accounts for 17% of the country's export capacity and about $20 billion in annual revenue. QatarEnergy expects the damaged lines to remain shut down for three to five years.
In an effort to increase supplies, Qatar is using the Golden Pass plant in Texas, jointly owned with ExxonMobil. The second production line there is scheduled to launch in the second half of 2026, and the third in the first half of 2027. After that, the plant's capacity is expected to reach 18 million tonnes per year.
Al-Kaabi rejected the idea of a pipeline route as an alternative to the Strait of Hormuz, explaining that LNG cannot be transported by pipeline in liquefied form.