QatarEnergy is lining up new LNG capacity and a dozen empty carriers as Hormuz traffic picks up

The first LNG train of QatarEnergy’s North Field East expansion will be ready to run in November — the first step toward replacing the capacity lost in the March attacks on Ras Laffan, two people aware of the company’s plans told Reuters. Production is expected in 1Q 2027. CEO Saad Al Kaabi said last month the project would start production in 1H 2027.

The new train comes with 17% of Qatar’s capacity still out: Two Ras Laffan trains are also still offline, removing 12.8 mn tons, about 17% of capacity, for three to five years, and QatarEnergy is still extending force majeure into November and early December.

In the near term, ships are lining up: QatarEnergy has at least 12 empty LNG carriers waiting near Qatar, a possible sign that more loadings are coming, Bloomberg reports. The vessels can carry roughly 1.1 mn tons — equivalent to about 2% of the global LNG tanker fleet. Whether they load and cross is uncertain after a Greek-owned LNG carrier was struck by an unidentified object near Hormuz last week.

Workarounds won’t close the gap: Ship-to-ship transfers, which Gulf crude exporters have relied on, can’t carry anything close to Qatar’s normal LNG volumes.

Shell has partially restarted Pearl GTL, the 140k boe / d gas-to-liquids plant fed from the North Field, and QatarEnergy is selling its naphtha again. Shell said it is building a limited amount of inventory, with the plant’s damaged second train due back in 1Q 2027, in line with its March estimate. QatarEnergy has issued a spot tender for up to 50k tons of Pearl naphtha across four grades FOB Ras Laffan and resumed some contract deliveries, including India’s Haldia Petrochemicals, which received its 50k tons for the quarter. QatarEnergy’s last tender that included the Pearl grade went at a USD 150 per ton reduction to Middle East quotes.

MEANWHILE- QatarEnergy secured a USD 3 bn five-year facility from four Chinese banks for general working capital, Bloomberg reports. The Bank of China, ICBC, Agricultural Bank of China, and China Construction Bank Asia priced it at 50 basis points over the Secured Overnight Financing Rate. Chinese lenders are continuing to deploy capital to selected Gulf borrowers despite the war, with the lending standing at USD 2.3 bn so far this year, against a record USD 11.5 bn last year.

AND- QatarEnergy took a 30% stake in seven offshore exploration blocks in Brazil’s Ceará Basin, on the northeastern Equatorial Margin, in ANP’s sixth open acreage round, The Peninsula reports. Petrobras operates with 70%. The blocks cover about 4.7k sq km in water depths of 2k-3.6k meters, and the concession contracts are due to be signed in 1H 2027.

What’s next? Force majeure runs into early December. Al Kaabi said last month that QatarEnergy is producing very little LNG but could return to normal operations within weeks of the strait reopening.