QatarEnergy’s expansion will see liquefaction train come online in November

World’s largest LNG expansion to take key step forward with first of four liquefaction units to be ready for operations.

What: QatarEnergy has quashed concerns that its North Field East expansion could be delayed by announcing its first liquefaction unit will come online in November.

Why: Fears had emerged that Iran’s closure of the Strait of Hormuz would delay the arrival of key equipment needed for the liquefaction train to be brought online.

What Next: QatarEnergy’s declaration of force majeure to customers could be lifted in the first quarter of 2027 when it starts producing LNG from the new train.

QatarEnergy’s North Field East expansion project could have its first liquefaction train be ready to begin operation in November, Reuters reported on October 7 citing sources familiar with the matter.

First LNG could begin being produced from the liquefaction unit in the first quarter of 2027, the sources added.

Commencement of LNG production at the North Field East expansion could mark a key turning point for Qatar, which was the world’s second largest exporter of LNG in 2025, but has seen export plummet since the Middle East conflict erupted between the US, Israel, and Iran.

Iran’s attack in mid-March on QatarEnergy’s liquefaction trains 4 and 6 knocked offline about 12.8mn tonnes per year (tpy) of LNG or roughly 17% of the Gulf country’s production. Meanwhile repairs to the two trains are expected to take between three and five years.

The closure of the Strait of Hormuz by Iran has brought Qatar and the United Arab Emirates LNG exports to a standstill with the two Gulf countries able to only export a few cargoes on vessels that gained special permission from Iran to travel through the strait.

Consequently, Qatar has extended its force majeure on deliveries of LNG cargoes to several Asian customers into November, while LNG cargoes to Italy’s Edison have also been suspended for the same period.

Facing concerns that it may need to further extend its force majeure to customers, QatarEnergy has begun negotiations with several US suppliers as it seeks to procure supply to make up for lost volumes from Iran’s attack.

Meanwhile, rumours had emerged that Qatar’s expansion projects may need to be delayed due to the blockade of the Strait of Hormuz delaying the arrival of critical equipment to Qatar.

And with export revenue plummeting, QatarEnergy’s lack of operational liquidity had also sparked fears that the LNG giant may not have the cash resources to proceed ahead with the expansion.

However, those fears were allayed earlier in October when QatarEnergy secured a $3bn syndicated loan financed exclusively by four major Chinese financial institutions, namely Bank of China, Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China, and China Construction Bank Asia.

While Train 1 at the North Field East expansion is expected to begin producing super-chilled fuel in the first quarter of 2027, no detailed timeline has been set yet for the other three trains that will comprise the expansion.

However, QatarEnergy CEO and President Saad al-Kaabi, who also serves as Qatar’s Minister of State for Energy Affairs, has declared that the other three North Field East liquefaction trains will start up sometime during 2027. Each train would add 8mn tpy of liquefaction capacity.

Moreover, in late September al-Kaabi added that the North Field South expansion remains on target to begin producing super-cooled gas in 2028. The expansion will add two additional liquefaction units and 16mn tpy of LNG.

While al-Kaabi admitted in September that QatarEnergy is currently producing only a small amount of super-cooled gas, QatarEnergy’s CEO and President has vowed that the state-run company would be able to resume normal operations within weeks once the Strait of Hormuz is opened.

Qatar’s reputation as a reliable supplier of LNG has taken a serious blow following its declaration of force majeure in March. The closure of the Strait of Hormuz has also forced LNG buyers to rethink their procurement process.

Countries heavily dependent on LNG imports have made significant attempts to diversify their LNG suppliers, particularly looking to buy super-chilled fuel from stable democracies with clear shipping paths.

QatarEnergy currently finds itself in damage control mode attempting to salvage its reputation. Adding new supply to its portfolio with the addition of LNG produced from the North Field East expansion will go a long way in alleviating concerns among buyers about the Gulf country’s ability to make up for supply lost by the attack on the Ras Laffan Industrial Complex.

QatarEnergy is now far removed from a time when it looked ready to rival the US for LNG exporting supremacy just one year ago. Lofty targets to raise production capacity to 142mn tpy by 2030 had given the Gulf state hopes of being the most trusted supplier in the world.

However amid regional conflict, Qatar now finds itself in a position of attempting to alleviate fears and concerns with its customers about its ability to consistently supply contracted cargoes.