Qatar expects expansion of its LNG production expansion project, which include North Field East (NFE) and North Field South (NFS), to begin in H1 2027 as ongoing disruptions in the Strait of Hormuz threaten equipment deliveries.
Both NFE and NFS draw natural gas from the same giant offshore reservoir, known as the North Field, located off the northeast coast of Qatar.
Speaking at the Bloomberg-powered Qatar Economic Forum in New York, Saad Al-Kaabi, Qatar’s Energy Minister and QatarEnergy CEO, said: “Throughout our history, we have been a reliable producer and supplier with zero defaults on any shipment. But this is absolutely beyond our control.”
Although regional neighbours offered territory to bypass the strategic waterway, Qatar has rejected building new bypass export pipelines based on commercial and technical criteria, noting that transporting gas via pipeline would necessitate constructing redundant liquefaction facilities at receiving terminals.
According to the latest announcements, Phase 2 of the North Field South (NFS) is scheduled to begin production in 2028, shifting from its previous 2026 timetable.
This will boost the total capacity to 145 million tonnes per year by 2030.
However, Al-Kaabi warned that prolonged transit disruptions in Hormuz could delay additional production trains.
“It will depend a lot on the Hormuz Strait for the additional trains that are going to come, because that could push it back if we can’t get facilities coming in,” says Al-Kaabi.
Operations can resume within weeks of the strait reopening, but physical damage from recent attacks on Ras Laffan will require three years to repair two LNG trains, while repairs on the Pearl GTL plant will conclude in the first quarter of 2027.
The host region’s geopolitical turbulence has severely affected national production capabilities, wiping out 70 per cent of state revenue and contributing to a 7 per cent economic contraction.
To navigate these regional constraints, Qatar is expanding its international footprint to become the world’s largest LNG trader in the very near future.
In the US, export shipments have commenced from the first train at Golden Pass LNG, with the second and third trains targeted for full operation next year.
Furthermore, commissioning has started at the Golden Triangle Polymers project’s ethane cracker ahead of its planned startup.
Despite the hydrocarbon sector contraction, non-hydrocarbon GDP grew by 3.5 per cent, supported by strong fiscal reserves, a reduced debt-to-GDP ratio of 40 per cent, and stable sovereign wealth investments.