A Qatari LNG tanker sailed through the Strait of Hormuz on Thursday — one of the few transits made since the Iran war began and a hopeful sign for Doha as it looks to revive its gas exports and wider economy.
The state-owned QatarEnergy has told buyers it could reach about 50% of output capacity within a month of the strait fully reopening, Bloomberg reported. That could rise to 80% a month later, but restoring full production will take much longer: Two of the energy giant’s LNG plants were hit by Iran early in the war. At the time, the company said it could take up to five years and $26 billion to repair them.
The interim deal between the US and Iran includes provisions for Tehran to use “its best efforts” to allow commercial vessels to pass safely through the strait, but there has been no surge in traffic yet. Gas exports underpin the Qatari economy and the IMF reckons GDP will contract by 8.6% this year, making it the worst-hit of the Gulf countries.