QatarEnergy secures $3bn Chinese loan for LNG expansion

QatarEnergy has secured a five-year, $3 billion loan from four Chinese state banks. The funds will support the company's North Field East liquefied natural gas project as it navigates severe shipping disruptions in the Strait of Hormuz. The loan was priced at 50 basis points above the Secured Overnight Financing Rate.

The banks involved are Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, and China Construction Bank (Asia). Chinese banks' lending in the Gulf region soared more than fivefold to a record $11.5 billion in 2025, excluding bilateral loans. This deal highlights China's continued financial backing for Gulf energy exporters.

North Field East project to boost export capacity

The North Field East expansion is designed to significantly increase Qatar's LNG export capacity. The project involves constructing four new large production lines, known as trains. Each train is designed to produce approximately 8 million tonnes of LNG per year.

Once completed, the project will raise Qatar's total LNG export capacity from 77 million to 110 million tonnes annually. Qatar is currently the world's second-largest liquefied natural gas exporter.

Iranian attacks and shipping disruptions delay recovery

The expansion push comes as Qatar works to recover from Iranian attacks on its Ras Laffan industrial complex in March. Those attacks damaged two LNG production units, affecting around 17% of the country's total export capacity.

LNG shipments through the Strait of Hormuz rose slightly in September. Traffic remains over 75% below pre-war levels, however. The war has led to a dramatic decline in exports. Qatar has lost an estimated $24 billion in sales over the past six months.

At least 12 empty LNG carriers owned or chartered by QatarEnergy were waiting near Qatar recently. The company extended a force majeure on LNG deliveries to Asia and Europe through the end of November.

Recovery timeline uncertain due to shipping risks

QatarEnergy chief executive Saad Sherida Al-Kaabi provided updates on the recovery and expansion timeline last month. He stated that repairs to the war-damaged units could take up to three years. Undamaged facilities could return to normal operations within weeks of the Strait of Hormuz reopening.

Regarding the new North Field East project, Al-Kaabi said "the first unit was expected to come online in the first half of 2027." LNG production is expected to begin in the first quarter of that year. The first production unit is expected to be ready to start up in November.

He warned that "disruption to shipping through the Strait of Hormuz could delay equipment deliveries for later units." This complicates the schedule for the project's subsequent production trains. Al-Kaabi also stated Qatar will not use pipelines as an alternative export route due to commercial and technical criteria.

The company has not publicly commented on the reported $3 billion loan or the precise production timetable. QatarEnergy's force majeure on LNG deliveries to Asia and Europe remains in place through November.