Qatar Says Its Ready to Resume LNG Operations Within Weeks of Hormuz Reopening

Dow Jones
09/21
 
 

Qatar could restore normal operations at parts of its liquefied natural gas facilities within weeks of the reopening of the Strait of Hormuz, the Minister of State for Energy Affairs Saad Sherida Al-Kaabi said, even as extensive damage from Iranian attacks is expected to constrain production for years.

Qatar, one of the world's top three LNG exporters before the war alongside the U.S. and Australia, halted LNG production earlier this year following the near-closure of the strait and Iranian attacks on Ras Laffan-the world's largest LNG export hub. The strikes knocked out around 17% of the facility's capacity.

Al-Kaabi said Sunday that repairs to the damaged gas-to-liquids facility are expected to be completed in the first quarter of 2027, while restoring the two damaged LNG trains could take as long as three years.

In late August, QatarEnergy--the state-owned petroleum company of Qatar--extended force majeure on contracted supplies for some buyers into early November. "Throughout our history, we have been a reliable producer and supplier with zero defaults on any shipment," Al-Kaabi said at the Qatar Economic Forum. "But this is absolutely beyond our control."

Despite the disruption, Qatar doesn't plan to build new pipelines to bypass the Strait of Hormuz. Al-Kaabi said such a route would require natural gas to be transported by pipeline and liquefied at receiving terminals, effectively requiring Qatar to build additional infrastructure that would duplicate facilities already planned as part of the North Field expansion.

In the meantime, the emirate is seeking to expand its role as a global LNG trader, with more volumes handled outside the Gulf following the start of operations at the Golden Pass LNG export facility in the U.S.

"In the very near future, we will be the largest LNG trader in the world by far," Al-Kaabi said. "And we're building our position to become the largest trader."

 
 

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