Qatar anticipates beginning production from its North Field East liquefied natural gas (LNG) expansion in the first half of 2027, officials confirmed at the Qatar Economic Forum in New York. The announcement, made by Minister of State for Energy Affairs HE Eng Saad bin Sherida Al Kaabi on Sunday, marks a delay from earlier projections that expected output to start in 2026.

The North Field East project constitutes the initial phase of Qatar’s broader LNG capacity expansion. Al Kaabi noted that shipping disruptions in the Strait of Hormuz, a crucial maritime route for the region’s energy trade, have contributed to the revised timeline. The minister emphasized that logistical challenges in transporting necessary equipment through the strait could further affect future phases of the expansion. The subsequent phase, known as North Field South, is scheduled to become operational in 2028.

The shift in schedule underscores concerns that ongoing tensions and potential closures of the Strait of Hormuz—exacerbated by conflict involving Iran—may continue to disrupt global LNG supplies. Qatar, the world’s second-largest LNG exporter, has already faced supply constraints, which have contributed to rising spot prices across Asian and European markets, reaching levels not seen since 2022.

Despite these challenges, Al Kaabi reaffirmed Qatar’s reliance on the Strait of Hormuz as an essential transit corridor, stating that Doha has no plans to construct alternative pipeline routes to bypass the waterway. He also highlighted that parts of Qatar’s Ras Laffan LNG plant, which accounted for nearly 20 percent of global LNG production prior to recent conflict, remain intact and could resume limited operations within weeks once the strait reopens.

The Ras Laffan facility suffered damage to approximately 17 percent of its infrastructure during attacks associated with the early stages of the Iran war, actions that involved military operations by the United States and Israel. Repairs to the affected sections are expected to take several years to complete.

Currently, Qatar is exporting only minimal volumes of LNG through the Strait of Hormuz. To manage supply and market demands, the country is focusing on expanding its LNG trading activities globally. The recent launch of the Golden Pass LNG export terminal in the United States supports this strategic pivot, enabling Qatar to increase its presence in markets outside the Gulf.

Al Kaabi expressed ambition for Qatar to become the world’s largest LNG trader, stating, “We will be, in the very near future, the largest LNG trader in the world by far.” Additionally, the Shell-operated Pearl Gas-to-Liquids (GTL) facility in Qatar, which was also damaged in attacks earlier this year, is slated to restart production in the first quarter of 2027.

The government of Qatar sponsors the Qatar Economic Forum, where these updates were provided.