Qatar is ready to resume LNG exports. Full operations could be back within a month

Following reports that a temporary ceasefire between the US and Iran may have been reached, energy commodity exporters in the Persian Gulf are stepping up preparations. QatarEnergy is ready, according to Reuters, to resume liquefied natural gas (LNG) production at its Ras Laffan terminal. The terminal was partially damaged in an Iranian attack in mid-March. However, the undamaged part of the operation could be fully back online within a month, according to the company. The availability of LNG on the global market is also crucial for Europe, particularly given the low levels of gas in underground storage facilities.

The ongoing conflict in the Middle East has been restricting oil and natural gas supplies to the global market for several months. In recent days, however, energy markets have been notably optimistic about a possible temporary ceasefire between the US and Iran. The deal is also expected to include the reopening of the Strait of Hormuz, a key route for energy commodities from the Persian Gulf. Ensuring safe maritime transport should therefore allow oil and natural gas supplies to increase.

Attention is focused particularly on Qatar, traditionally one of the world's largest suppliers of liquefied natural gas. The war in the Middle East has disrupted around a fifth of global LNG supplies, significantly affecting gas prices.

According to a Reuters source familiar with the situation, QatarEnergy should be able to resume LNG production and exports within a month. In this case, a full resumption of operations would apply to facilities that were not damaged in the March attack. Iran hit parts of the Ras Laffan terminal at the time, knocking out around 17% of Qatar's export capacity for several years. In addition to restoring the terminal's operations, however, safe passage for tankers must also be ensured.

"The issue will be how quickly we can get the ships there and how quickly we can load them once the strait opens. It's more a shipping and logistics issue than a production issue," a source who did not wish to be named told Reuters.

LNG availability is crucial for the European market

European gas storage facilities finally began filling at the start of April. However, analysts at the Oxford Institute for Energy Studies say that the weak starting position after winter and the current situation on the liquefied natural gas (LNG) market will result in storage reaching only 70% of capacity ahead of the coming winter.