Qatar is mobilizing engineers and workers with the aim of resuming production at the world’s biggest liquefied natural gas export plant following a ceasefire in the war in the Middle East, according to people with knowledge of the matter.
The improvement in security conditions is allowing limited activity, and the facility is undergoing necessary maintenance ahead of a planned restart, said the people, who asked not to be identified as they are not authorized to speak with the media. Some production could begin to resume over the coming days, though it’s not clear how quickly it could ramp up, and any return to significant output would require ships to be able to pass through the Strait of Hormuz.
Ras Laffan has been offline since early March, triggering a global gas supply crunch. While damage to the plant from a missile attack last month took out 17% of Qatar’s annual export capacity for as long as five years, restarting other parts of the massive facility would be an important milestone. The entire plant has the capacity to produce 77 million tons of LNG a year.
QatarEnergy didn’t immediately respond to a request for comment.
European gas prices extended declines after the news, falling almost 20% near €43 a megawatt-hour, before paring some losses.
Earlier this week, two LNG tankers loaded with Qatari fuel abandoned attempts to pass through Hormuz after failing to secure clearance from Iranian officials.
While the US and Iran have agreed a ceasefire in exchange for reopening of the strait, details remain murky, and the two nations have outlined positions that do not fully reconcile. Tehran said it agreed to two weeks of safe passage in coordination with its armed forces and within “technical limitations,” while US President Donald Trump announced a “COMPLETE, IMMEDIATE, and SAFE OPENING”.
Source: Bloomberg
Robban Assafina is now on WhatsApp channel. Click Here
