Crisis in the Strait of Hormuz threatens Qatar’s LNG expansion — OilPrice
The crisis in the Strait of Hormuz could delay the expansion of liquefied natural gas production in Qatar, as critically important equipment cannot reach the country. QatarEnergy CEO and Qatar’s Energy Minister Saad al-Kaabi said this, OilPrice reports, citing Reuters.
According to al-Kaabi, the first production line of the North Field East project is expected to begin operating in the first half of 2027. At the same time, the launch of subsequent lines depends on the resumption of shipping through the Strait of Hormuz and adherence to the schedule for starting production at North Field South in 2028.
Damage to production lines
On March 18, an Iranian missile strike on the industrial city of Ras Laffan put two of Qatar’s 14 LNG production lines out of operation. According to OilPrice, this accounts for 17% of the country’s export capacity and about $20 billion in annual revenue.
QatarEnergy expects the damaged lines, with a combined annual capacity of 12.8 million tonnes, to remain shut down for three to five years. Shell’s Pearl gas-to-liquids plant, which was also hit, is planned to return to operation in the first quarter of 2027. Al-Kaabi said that Qatar is currently producing a very small volume of LNG, but normal operations can be restored within several weeks after the strait is reopened.
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Expansion plans and alternative supplies
At the beginning of 2026, QatarEnergy planned to increase production capacity from 77 million to 142 million tonnes of LNG per year by 2030. The program, worth approximately $83 billion, envisaged the participation of ExxonMobil, ConocoPhillips, Shell, TotalEnergies and Eni and, according to OilPrice, was expected to provide 40% of new LNG volumes on the global market.
To increase supplies, QatarEnergy is also using the Golden Pass plant in Texas, jointly owned with ExxonMobil. The second production line there is scheduled to launch in the second half of 2026, and the third in the first half of 2027. After that, the plant’s capacity is expected to reach 18 million tonnes per year.
Al-Kaabi rejected the idea of a pipeline route as an alternative to the Strait of Hormuz, explaining that LNG cannot be transported by pipeline in liquefied form. According to him, such an option would require the construction of additional facilities for transporting and re-liquefying gas, which makes no economic sense.
LNG tankers have resumed limited passages through the strait: satellite data recorded at least two vessels that passed through the waterway, while another two transferred cargo off the coast of Oman. Before the war, about three LNG cargoes passed through the strait daily.
