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QatarEnergy Warns of Delays to North Field LNG Expansion Amid Hormuz Shipping Crisis
Summary
The state-owned energy giant said its massive North Field LNG expansion faces potential delays due to shipping disruptions in the Strait of Hormuz, though the first phase remains on track for early 2027.
QatarEnergy’s massive liquefied natural gas (LNG) expansion faces potential delays for its later stages due to ongoing shipping disruptions in the Strait of Hormuz, according to CEO Saad al-Kaabi. The state energy firm still expects the first production unit of its North Field East project to come online in the first half of 2027, but subsequent phases are at risk.
Expansion Timeline Threatened
Speaking at the Qatar Economic Forum in New York, al-Kaabi, who is also Qatar's energy minister, stated that equipment essential for the expansion cannot currently reach the country. This logistical bottleneck directly threatens the timeline for bringing additional production trains online.
While the first North Field East (NFE) train is slated for H1 2027, several other NFE trains scheduled for 2027 and the entire North Field South (NFS) expansion, expected to start in 2028, are now subject to uncertainty. Al-Kaabi noted that overland pipelines through neighboring countries were not a practical alternative, having been rejected on commercial and technical grounds.
Production Hit by Separate Issues
Compounding the logistical challenges, Qatar is also grappling with significant repairs at its Ras Laffan LNG export hub. Recent attacks knocked out approximately 17% of the nation's LNG capacity, according to the CEO.
AdTwo damaged LNG trains could take up to three years to repair, while a gas-to-liquids plant is expected to be back online in the first quarter of 2027. Al-Kaabi said that Qatar is currently producing "very little LNG" but could restore normal gas operations within weeks once the Strait of Hormuz reopens to shipping.
US Project Advances Amid Uncertainty
Despite the challenges in the Gulf, QatarEnergy's international ventures are progressing. The Golden Pass LNG project in Texas, a joint venture with Exxon Mobil, shipped its first cargo in April after starting its first train in March.
Al-Kaabi confirmed that the project's second and third trains are expected to be fully operational in 2027, reaching a total production capacity of 18 million metric tons per year. The CEO also reiterated QatarEnergy's ambition to expand its trading business to become the world's largest LNG trader by a wide margin.
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