Shell Warns of Extended Downtime for Qatar LNG Facility

Shell's LNG production facility in Qatar has been severely impacted by the recent Middle East conflict. The plant, which is operated by QatarEnergy, was hit by a missile strike during the US-Israeli conflict with Iran. According to Shell's Chief Financial Officer Sinead Gorman, sections of the Pearl gas-to-liquids plant that were damaged will not be back in service until the first quarter of 2027.

Gorman told reporters that unaffected units at the facility could restart as soon as shipping lanes reopen, but this is dependent on various factors. Shell holds a 30% stake in QatarEnergy LNG's fourth expansion train at Ras Laffan, which has continued operating throughout the disruption. This facility produces 2.4 million tonnes of equity production per year.

The disruption has weighed heavily on Shell's Integrated Gas division, where production fell 31% quarter-on-quarter and LNG liquefaction slipped 2%. Despite this, Shell's second-quarter profit surged to its highest level since the Ukraine war, reaching $9.8 billion. This is more than double the profit from a year earlier and ahead of analyst forecasts.