Qatar is preparing to boost liquefied natural gas production after the Strait of Hormuz reopens, with the aim to restore most of its export capacity in two months, according to report by Bloomberg citing people aware of the development.
The operator of the country's LNG facility, QatarEnergy has informed buyers that it expects to increase output to nearly 50% of capacity a month after passage through the strait is restored, and about 80% in two months. The remaining capacity of around two production trains will several years to completely restore after it was damaged by Iranian missile strikes in March, the report said.
Qatar had shut down the world's largest LNG facility in the first week of the conflict following an attack by Iran, resulting in cancellations and hampering the supplier's longstanding reputation for reliability. The Ras Laffan complex, a facility that exported nearly a fifth of global supply last year, remained primarily idle for over three months as the closure of Hormuz disrupted shipping of gas.
The country, however was establishing the groundwork since April to enable rapid restart of operations.
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QatarEnergy is testing equipment and performing necessary maintenance, Bloomberg reported in April. Several production trains have been operating at less capacity for the plant to deliver shipments to neighbours and also increase output when required, the report said.
This development comes as US President Donald Trump repeatedly said Hormuz would be open by Friday, when an interim agreement is due to be signed with Iran in Switzerland. Shipowners, traders and producers have been trying to seek clarity on the situation.
The return of LNG from Qatar is expected to ease a global supply cocnerns. Even after confirmation of a US and Iran peace agreement, LNG prices in Europe and Asia remain high in comparison to pre-war levels.
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