Qatar's LNG expansion plan delayed until 2027, adding more uncertainty to global natural gas supply

Iran drone attack triggers an unprecedented full shutdown at Ras Laffan plant in Qatar, disrupting the expansion of one of the world’s largest LNG (liquefied natural gas) producers.

According to Bloomberg, QatarEnergy has delayed the startup of the North Field East expansion project until at least 2027.

The shutdown was caused by a drone attack on Ras Laffan industrial facilities last week, forcing Qatar to suspend some production activities. Bloomberg citing sources said that if the shutdown lasts no more than a month, the North Field East project is planned to begin exports early next year. As tensions in the Persian Gulf region escalate, a longer shutdown could further delay the start of operations.

The project has an annual capacity of 32 million tons and is a key part of the global LNG supply surge expected this decade. Its delay means that the previously anticipated LNG oversupply in the market will be pushed back, prompting a reassessment of global supply and demand balance.

Shutdown Impact: Unprecedented Operational Disruption

Ras Laffan is the core hub of Qatar’s LNG production. The drone attack last week forced the facility to shut down, marking the first such incident in Qatar’s LNG operations history. The exact duration of the shutdown remains unclear.

This is not the first time the North Field East expansion project has faced schedule adjustments. Bloomberg reports that QatarEnergy had already postponed the project’s start-up to the end of this year back in February, though no specific reasons were disclosed at that time. Typically, large energy projects often experience delays near commissioning to allow time for technical issues to be resolved.

QatarEnergy Minister Saad Al-Kaabi told the Financial Times last week that there is a possibility of delays for the expansion project but did not specify a timeline.

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