QatarEnergy plans to hit 80% LNG capacity within two months of Hormuz reopening

QatarEnergy has told buyers it can reach 50% LNG output one month after the Strait of Hormuz reopens and 80% within two months, according to Bloomberg.economictimes
The Ras Laffan complex has been largely offline since Iranian strikes in March knocked out two of 14 trains, removing 17% of capacity for years.reuters
Shippers warn that mines and insurance costs could delay full transit for weeks, with analysts saying pre-conflict volumes are “realistically a 2027 story.”straitstimes

Qatar Plans Rapid LNG Restart After Hormuz Reopens

QatarEnergy has told buyers it expects to restore liquefied natural gas output to roughly 50% of capacity within one month of the Strait of Hormuz reopening, and to about 80% within two months, according to Bloomberg reporting cited by multiple outlets on Monday.economictimes

The announcement comes as the United States and Iran move toward signing a memorandum of understanding to end their war and reopen the strait. President Donald Trump said on Sunday at the G7 summit that the waterway would be “completely open” by Friday, and that he expected an agreement with Iran to be finalized. U.S. and Iranian officials reached a framework deal over the weekend to reopen the critical shipping lane.nbcnews

Three Months of Disruption

The Ras Laffan complex — which exported nearly a fifth of global LNG supply — has been largely offline since Iranian drone strikes hit the facility on March 2, followed by ballistic missile strikes on March 18 that damaged two of its 14 production trains. QatarEnergy CEO Saad al-Kaabi said at the time that Trains 4 and 6 would require three to five years to repair, removing 12.8 million metric tons per year of capacity and costing an estimated $20 billion in annual revenue.newsbase

Qatar declared force majeure on LNG contracts and extended it through mid-June as the strait remained closed to most commercial shipping. The disruption sent European gas prices surging more than 30% in early March alone.bloomberg

Groundwork for Restart

Qatar has been preparing since April, when a brief ceasefire allowed initial restart efforts to begin. Several undamaged trains have been running at reduced capacity to supply neighboring countries while crews tested equipment and performed maintenance. The remaining 12 operational trains form the backbone of the planned ramp-up.oilandgasmiddleeast

However, the path to full recovery faces obstacles. Shippers in Asia and Europe said confidence in resuming Hormuz transit could take weeks to rebuild, with mines and elevated insurance premiums remaining key concerns. U.S. Energy Secretary Chris Wright acknowledged on June 9 that restoring normal energy flows could take “several months” even after a lasting peace is established. ICIS analyst David Jorbenaze told Reuters that “returning to full pre-conflict volumes is realistically a 2027 story”.reuters

The strait remained technically closed as of Sunday, though vessel traffic has increased in recent weeks with U.S. Navy escorts guiding ships along a southern route near Oman.cnbc