ConocoPhillips' President of European Gas, Jonathan Burgess, stated at the Flame gas and LNG conference in Amsterdam on Tuesday that while the company's liquefied natural gas joint venture with QatarEnergy may face delays, the postponement is anticipated to be measured in months, not years.

Project Background and Recent Damage ConocoPhillips is a partner in QatarEnergy's major LNG project, which includes offshore facilities in the North Field and onshore facilities at Ras Laffan. The Ras Laffan facilities were damaged in an airstrike on March 19, several weeks after the outbreak of conflict in Iran. QatarEnergy had previously indicated that gas supplies to China, South Korea, Belgium, and Italy could be affected for several years.

North Field Project Continues to Advance Burgess noted that the joint venture projects for the eastern and southern sections of the North Field are still progressing. These projects aim to increase Qatar's annual LNG production capacity from 77 million tonnes to 126 million tonnes. He stated, "While we may see some delays, they are more likely to be measured in months, not years."

Industry Views and Alternative Supply At the same conference, Marco Salfrank, Head of Commodity Trading at Swiss energy group Axpo, suggested that Qatar's LNG expansion plans could be delayed by six months to a year, depending on when a resolution to the conflict in Iran is reached. He also pointed out that increased LNG supply from the United States would help mitigate the impact of a blockade of the Strait of Hormuz and damage to production facilities.

Burgess also confirmed that ConocoPhillips is "heavily investing" in the Port Arthur LNG project in the United States, which is expected to achieve initial production by 2027.