(Reuters) – Any delays to increasing liquefied natural gas production capacity at ConocoPhillips’ joint ventures with Qatar are likely to be months, not years, its Europe Gas head said.
The U.S. energy group is a partner in QatarEnergy’s main LNG project, which includes offshore facilities in the North Field and onshore facilities at Ras Laffan, which was damaged by strikes on March 19, several weeks after the Iran war began. QatarEnergy signalled that its gas supply to China, South Korea, Belgium and Italy could be impacted for years.
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However, the outlook is more positive for other projects the U.S. company is developing in the Gulf country, said Jonathan Burgess, ConocoPhillips president for Europe Gas.
“North Field East, North Field South JVs are ongoing now, and whilst we might see some delays, they are more likely measured in months rather than years,” Burgess told a panel during the Flame conference on gas and LNG in Amsterdam.
ConocoPhillips is a partner with QatarEnergy in two joint ventures focused on the North Field East and North Field South projects, which are expected to increase Qatar’s LNG production capacity from 77 million metric tons per year to 126 MTPA.
Marco Saalfrank, head of merchant trading at Swiss energy group AXPO, told the same panel discussion that Qatar’s plan to expand LNG capacity could be delayed by six months to one year, depending on when a solution to the Iran war is found.
Saalfrank said he expected some demand destruction to help balance the LNG market over the coming year.
A U.S. supply hike will also help smooth the impact of the blockage of the Strait of Hormuz and production plant damage.
ConocoPhillips is “heavily investing” in the Port Arthur LNG project in the U.S., Burgess said, confirming initial production was expected in 2027.
Reporting by Francesca Landini; Editing by Mark Potter and Alexander Smith
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