Qatar's LNG Loss Spurrs $60 Billion in Alternative Gas Deals

Disruptions to Qatar's liquefied natural gas (LNG) exports due to strikes have led to renewed interest in alternative projects, including those in Argentina, Timor-Leste, and Tanzania. The North Field and Iran's South Pars share the same 9,000-square-kilometer gas formation, holding 25% of global gas resources and supplying 10% of worldwide production.

Qatar's LNG export capacity was cut by approximately 17% after two LNG production units at Ras Laffan were damaged in March. The estimated cost for repairs is around $5.8 billion, with full restorations expected to take up to three years. QatarEnergy has pushed back the launch of the first production unit at the North Field East project to the first half of 2027.

Buyers are seeking alternative gas supplies as a result of these disruptions. At the Gastech conference in Bangkok, agreements worth an estimated $60 billion were announced or advanced, including a 20-year LNG contract between China Gas Holdings and U.S. exporter Venture Global LNG. PETRONAS, PTTEP JDA, and the Malaysia-Thailand Joint Authority also formalized a 35-year production-sharing contract and gas sales agreement in the Gulf of Thailand.