©Shutterstock / QatarEnergy is eager to ramp up LNG production soon
QatarEnergy intends to rapidly ramp up liquefied natural gas production at Ras Laffan once the Strait of Hormuz opens, according to a Bloomberg report.
It expects to lift output to about 50% of capacity one month after safe passage through the strait is restored and to roughly 80% within two months, it stated.
But as we , when exactly that ‘safe passage’ will be is uncertain – one that looks beyond the control of the Qatar energy producer. One former naval expert warned clearing the strait could be a “weeks to months long process”.
How quickly and effectively mines can be cleared is now the key issue to resolve for the global economy.
What is clear is that ships will not restart their engines – despite US President Trump’s encouragement – until concrete guarantees are in place. War-risk insurance premiums for tankers have surged, with a $100m vessel potentially facing around $3m in insurance costs per voyage.
President Trump insisted the strategic waterway is already “partially opened” with expectations for it to be “completely open” by Friday (19 June).
Details of the US-Iran framework deal are expected to be announced on the same date, if not before. Speaking at the G7 Summit today, UK Prime Minister Keir Starmer said reopening the strait was “very important” because of its impact on energy prices.
