QatarEnergy is pushing ahead with its liquefied natural gas (LNG) expansion, with the first production unit at the North Field East project expected to be ready for start-up in November, according to Reuters. Two people familiar with the plans told the agency that LNG production is slated to begin in the first quarter of 2027.
Last month, QatarEnergy's chief executive and Minister of State for Energy Affairs, Saad Sherida Al-Kaabi, said the first unit was expected to come online in the first half of 2027. He cautioned that shipping disruptions through the Strait of Hormuz could delay equipment deliveries for subsequent units.
The North Field East project comprises four large production trains, each designed to produce about 8 million tonnes of LNG annually. The expansion aims to lift Qatar's export capacity from 77 million to 110 million tonnes per year.
Recovery from Iranian attacks
The expansion comes as Qatar works to recover from Iranian attacks on Ras Laffan in March, which damaged two LNG production units and affected roughly 17% of the country's export capacity. Al-Kaabi said last month that repairs to the damaged units could take up to three years, while undamaged facilities could return to normal operations within weeks of the Strait of Hormuz reopening.
Bloomberg reported that at least 12 empty LNG carriers owned or chartered by QatarEnergy were waiting near Qatar. LNG shipments through Hormuz rose in September but remained about 75% below February levels, underscoring the ongoing impact of regional tensions on energy flows.
Chinese banks provide $3bn loan
In a separate development, Bloomberg reported that QatarEnergy has secured a $3 billion (€2.68bn) loan from four Chinese banks, citing people familiar with the agreement. The five-year facility was provided by Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, and China Construction Bank (Asia).
The funds are intended for general working capital. The loan was priced at 50 basis points above the Secured Overnight Financing Rate (SOFR), a key US dollar lending benchmark.
This deal adds to a broader trend of Chinese banks expanding their lending in the Gulf. According to Bloomberg data, such lending rose more than fivefold to a record $11.5 billion (€10.29bn) in 2025, excluding bilateral loans.
For European energy markets, Qatar's LNG expansion is significant. The continent has increasingly relied on Qatari gas to replace Russian pipeline supplies, and any delays or disruptions in the Gulf can have direct consequences for European energy security. The release of emergency reserves earlier this year highlighted the fragility of global energy supply chains.
While Qatar's immediate focus is on repairing damaged infrastructure and restoring output, the North Field East project remains central to its long-term strategy. The involvement of Chinese banks underscores the growing financial ties between Doha and Beijing, even as European buyers seek to secure stable LNG supplies.
The first train's start-up in early 2027 would mark a major milestone, but the timeline remains subject to geopolitical risks, particularly the security of the Strait of Hormuz. As Al-Kaabi noted, any disruption to shipping could push back equipment deliveries, potentially delaying the project's full completion.
