To quickly increase the production of liquefied natural gas (LNG) once the Straits of Hormuz have reopened plans Qatar, seeking to restore most of its export capabilities within two months. Development is expected to help de-escalate the pressure recorded on international gas markets following the conflict with Iran.
According to sources that have knowledge of design and invoked by Bloomberg, QatarEnergy, which manages the country's LNG production facilities, has informed its customers that it expects to increase production to about 50% of the total capacity a month after the restoration of safe passage from the Straits of Hormuz.
The same sources say that production could reach about 80% of the capacity within two months of the reopening of the sea route.
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However, the complete restoration of production is not expected to be immediate. Two production lines, corresponding to the remaining percentage of capacity, were damaged by Iranian missile attacks in March and will take years to return to full operation.
QatarEnergy did not go on to make a direct comment when it was called upon by the agency to be placed on this.
Suspension of operation from the first week of the warQatar suspended the operation of the world's largest LNG production complex during the first week of the war, following an Iranian attack. The decision led to cargo cancellations and affected the country's reputation as one of the most reliable gas suppliers internationally.
Ras Lafan's band, from which almost a fifth of the world's LNG bid came last year, remains largely inactive for over three months. The substantial interruption of navigation in the Straits of Hormuz made it extremely difficult to transfer large quantities of natural gas to international markets.
At the same time, Qatar has been preparing for months to restart the facility. QatarEnergy reportedly has been conducting equipment testing and maintenance operations since April to speed up production recovery.
Some production lines continued to operate with reduced capacity, allowing the supply of neighbouring countries but also the possibility of rapidly increasing production when conditions permit it.
Aim to restore to 50% within one monthThe ability to restore 50% of production within a month is considered to be faster than the forecasts of several energy analysts and traders.
Despite the interim agreement between the United States and Iran, there are still uncertainties about the time of full reopening of the Straits of Hormuz. US President Donald Trump has repeatedly stated that the passage will open by Friday, when an interim agreement with Iran is expected to be signed in Switzerland.
However, European governments appear more cautious. Senior American official has warned that it will previously be required to remove mines from the sea area, which still raises questions to maritime companies, merchants and energy producers.
The refund of significant quantities of LNG from Qatar is expected to help alleviate the international supply problems. Despite progress in diplomatic contacts between Washington and Tehran, LNG prices in Europe and Asia remain higher than pre-war levels.
Qatar has recently managed to make a limited number of exports to Asian customers, concealing the actual position of certain tankers for safety reasons. However, these shipments are still significantly below the country's normal export levels.