QatarEnergy Rejects Pipeline Bypass as Hormuz Closure Delays North Field Expansion

QatarEnergy has ruled out building new pipelines to bypass the closed Strait of Hormuz, confirming that critical infrastructure damage will delay its North Field gas expansion. The decision leaves the world's second-largest exporter of liquefied natural gas (LNG) heavily constrained.

The company's president and CEO, Saad Sherida Al-Kaabi, stated at the Qatar Economic Forum in New York that building redundant facilities would make no economic sense. Natural gas cannot be moved through pipelines in its liquefied state; it must first be regasified, pumped across the peninsula, and then reliquefied at a new terminal outside the Persian Gulf.

The closure of the Strait of Hormuz has damaged two critical LNG production trains, identified by industry analysts as Train S4 and Train S6, and a gas-to-liquids (GTL) plant. The destruction has temporarily removed approximately 17 percent of Qatar's total LNG export capacity, equivalent to roughly 12.8 million tonnes per year.

The timeline for restoring these facilities extends well beyond the current geopolitical crisis. While repairs to the GTL plant are scheduled for completion in the first quarter of 2027, Al-Kaabi confirmed it will take three full years to rebuild the two damaged LNG trains, pushing their return to service into 2029.

QatarEnergy is currently producing a 'very minute' volume of LNG compared to its historical baselines. The company has declared force majeure on long-term supply contracts with buyers in South Korea, China, Italy, and Belgium. However, Al-Kaabi emphasized that Qatar's production freeze is driven entirely by external military actions.