Qatar Pushes Back LNG Expansion as Hormuz Disruptions Bite

Qatar's Energy Chief Sees LNG Expansion Startup in 2027

The North Field East, the initial phase of Qatar's massive liquefied natural gas expansion project, is expected to come online in the first half of 2027. The timeline has been pushed back from an original start date of 2026. Energy Minister Saad Sherida Al-Kaabi warned that prolonged disruptions in the Strait of Hormuz could delay additional production trains.

The Strait's closure due to the Iran war has sent shockwaves through Qatar's economy, with natural gas revenue dwindling and no alternative shipping routes available. The country is expected to suffer an economic contraction of over 8% this year, according to the International Monetary Fund. Al-Kaabi stated that Hormuz will never be obsolete, contradicting Treasury Secretary Scott Bessent's prediction that it would become worthless in two years.

Qatar is pivoting towards becoming a larger trader of LNG, handling more exports outside the Gulf through its Golden Pass facility in the US. The country aims to become the world's largest LNG trader 'in the very near future,' according to Al-Kaabi. Shell Plc.'s Pearl GTL facility in Qatar will resume production in the first quarter of next year.