QatarEnergy warns Hormuz crisis may delay expansion

QatarEnergy CEO Saad Al-Kaabi said on Sunday that the ongoing crisis over the Strait of Hormuz could delay some of the company's major expansion projects because critical equipment is unable to reach Qatar, even as he offered reassurance that normal gas operations could resume quickly once the waterway reopens.reuters+1

Speaking at the Qatar Economic Forum in New York, Al-Kaabi said QatarEnergy was currently producing only a "very minute" volume of liquefied natural gas due to the disruption. He added that with the exception of the roughly 17 percent of capacity knocked offline by missile strikes on the Ras Laffan Industrial City in March, full LNG operations could return to normal within a couple of weeks of the strait reopening.thepeninsulaqatar+1

Expansion Timeline Holds — for Now

Despite the logistical challenges, Al-Kaabi said the first production train at the North Field East expansion is still expected to come online in the first half of 2027, according to Bloomberg. A few additional NFE trains are due to start up later in 2027, with the North Field South expansion set to begin production in 2028.bloomberg+1

The March strikes on Ras Laffan damaged two LNG-producing trains — Trains 4 and 6 — representing 12.8 million tons per annum of capacity. QatarEnergy estimated the damage would cost roughly $20 billion a year in lost revenue and take up to five years to repair, affecting supply to markets in Europe and Asia.thepeninsulaqatar

Wider Tensions Frame the Disruption

The equipment delays reflect broader pressure on Persian Gulf shipping as the nearly seven-month conflict between the United States and Iran continues. US Central Command said its forces had redirected 109 commercial vessels near the strait to ensure compliance by September 20, while the Joint Maritime Information Center recorded four tankers involved in attacks or suspicious activity in the area over the past week.iranintl

Iranian officials have continued to present the strait as a source of leverage. IRGC deputy commander Mostafa Izadi said the waterway remained under the control of Iran's armed forces, while Iranian lawmaker Mohsen Zanganeh argued that disruption there could raise energy costs across East Asia and affect US technology companies with manufacturing operations in the region.iranintl

The economic consequences extend well beyond Qatar. JPMorgan said in a September 17 report that it could no longer confidently model how the conflict would end. "For the first time since the start of the Iran conflict, we don't have a baseline view," the bank said.iranintl

ExxonMobil Exxon Mobil Corporation ↗ 0.34%, a joint-venture partner in the damaged Ras Laffan trains, holds minority stakes in both facilities. Al-Kaabi's comments underscored that even projects untouched by the fighting face growing risk from the maritime standoff that has restricted the flow of goods into and out of the Gulf.thepeninsulaqatar