Gastech leaders warn LNG recovery will lag Hormuz reopening

QatarEnergy is negotiating multi-year liquefied natural gas purchase agreements with US producers including Cheniere Energy ↘ 0.56%, Venture Global ↘ 2.77%, and Woodside Energy ↘ 1.86% to replace capacity knocked out by Iranian strikes on its Ras Laffan facility, according to Reuters.energynow+1

The talks, first reported on September 11, mark a shift from spot-market purchases to longer-term contracts as the world's second-largest LNG exporter grapples with damage that could take years to repair. QatarEnergy Trading is seeking roughly 2 to 3 million metric tons per annum through 2031, sources told Reuters. The negotiations come as industry leaders gathered at Gastech 2026 in Bangkok warned that reopening the Strait of Hormuz would not immediately restore normal gas flows.nationthailand+1

Damage and Lost Capacity

Iranian missile and drone strikes in March damaged two of Qatar's 14 LNG trains and a gas-to-liquids facility at Ras Laffan Industrial City, removing an estimated 12.8 million tonnes of annual capacity — roughly 17% of Qatar's export volumes. QatarEnergy CEO Saad al-Kaabi said repairs would take three to five years and cost about $20 billion annually in lost revenue.qatarenergy+2

The company has renewed force majeure notices monthly, most recently extending them through November, as the Strait of Hormuz remains closed. Shell ↘ 1.34% president of integrated gas Cederic Cremers told the Gastech panel on Monday that nearly seven months of disruption had removed 36 million tonnes of LNG from Qatar and the UAE compared with 2025 levels.boereport+1

US Producers Stand to Benefit

The disruption has accelerated demand for American LNG. US projects under construction have a total of 25 million metric tons available for purchase, according to Rapidan Energy data cited by Reuters. Venture Global holds the largest uncontracted volume at 10 million tons per annum, while Cheniere and Woodside each have about 6 million tons available. Sempra Energy's ↘ 1.06% Port Arthur LNG project has an additional 3 million tons.boereport

Cheniere, Venture Global, and Woodside declined to comment on the reported discussions.zacks+1

Recovery Will Take Time

At Gastech 2026 in Bangkok, executives from Shell, ExxonMobil Exxon Mobil Corporation ↗ 0.17%, ADNOC, Eni ↘ 1.48%, and Chevron ↘ 0.97% stressed that restoring production and shipping routes would be a prolonged process even after any reopening of the Strait of Hormuz. Cremers said Shell's Pearl GTL plant in Qatar was not expected to resume operations until late in the first quarter of 2027. European gas stocks were described as being at record lows ahead of winter, adding urgency to the search for alternative supply.nationthailand