QatarEnergy acknowledges expansion projects may be delayed

Qatar has warned that its ambitious expansion projects may be delayed due to the closure of the Strait of Hormuz delaying critical equipment from arriving on schedule, Reuters reported on September 20.

Speaking at the Qatar Economic Forum in New York, QatarEnergy’s CEO and President Saad al-Kaabi, who also serves as the country’s Minister of State for Energy Affairs, stated that only a “very minute” volume of the super-chilled fuel is currently being produced.

QatarEnergy’s North Field East expansion project was supposed to bring a couple new liquefaction trains online in 2027. Additionally, the North Field South expansion had been set to begin producing super-cooled gas in 2028.

Prior to the Middle East conflict erupting between Iran, Israel, and the US in March, Qatar had hoped to see enormous growth in its production capacity.

The Gulf country twice announced major expansion plans. First, Doha declared it would raise output from 77mn tonnes per year (tpy) to 126mn tpy. The world’s second largest producer then announced in February 2024 an even bigger expansion to raise production capacity to 142mn tpy by 2030.

Doha also began securing a larger fleet of LNG vessels to support the increased output. The company inked deals with Chinese and South Korean shipbuilders to significantly expand its fleet.

However, QatarEnergy has already announced that plans to restart production have been delayed. Following the establishment of a ceasefire framework in mid-June, Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani said that Qatar would return to normal LNG production within a few weeks.

But by July, Al Thani had to announce that the restart of full output would be put off indefinitely as the security situation failed to improve in the Strait of Hormuz.

With safe passage still not guaranteed through the Strait of Hormuz, Qatar has also been forced to extend force majeure on deliveries of LNG cargoes to some customers until November.