Shell has partially restarted its Pearl gas-to-liquids (GTL) facility in Qatar, marking a step towards restoring production at a major industrial complex damaged during the Iran war. The development comes as QatarEnergy begins bringing Pearl-linked naphtha cargoes back to the market after months of disruption.
The partial restart will allow Shell to accumulate a limited volume of products in storage. However, the company has cautioned that shipments remain dependent on the regional security situation and the ability of vessels to move safely through the Strait of Hormuz.
QatarEnergy has also resumed some contractual naphtha deliveries and begun offering cargoes for spot-market sales, providing a measure of relief to buyers grappling with constrained supplies. The conflict disrupted refinery operations and temporarily closed the Strait of Hormuz, a critical shipping route that previously carried around one-fifth of global oil and liquefied natural gas supplies.
Market participants said QatarEnergy recently launched a spot tender for as much as 50,000 metric tonnes of naphtha, covering four grades, including Pearl-GTL naphtha. The cargoes were offered on a free-on-board basis from Ras Laffan, Qatar’s major export hub located inside the Strait of Hormuz.
The company’s previous naphtha tender, which also included Pearl-GTL material, was awarded at a discount of $150 per tonne to Middle Eastern benchmark quotations on an FOB basis.
Contractual deliveries have also started reaching some customers again. India’s Haldia Petrochemicals received its allocation of 50,000 metric tonnes for the current quarter, according to a company executive.
Neither Shell nor QatarEnergy provided further details on the latest market tender.
Train 2 Repairs Targeted for Early 2027
Shell’s Pearl facility, supplied with gas from Qatar’s North Field, sustained damage in March when an attack during the Iran war hit one of its two processing units, commonly known as trains.
At full capacity, the plant can produce the equivalent of 140,000 barrels of oil per day. Its output is also an important component of Shell’s wider downstream operations, including its lubricants business.
Repairs to Train 2 are expected to be completed in the first quarter of 2027, a Shell spokesperson said. The company had previously estimated that restoring the damaged section would take approximately a year.
The pace of recovery will depend not only on repair work but also on the security environment across the region. Shell has stressed that safe, reliable operations require secure shipping routes, particularly through the Strait of Hormuz.
Meanwhile, Qatar is preparing another potential source of additional energy output. The first liquefied natural gas train under QatarEnergy’s North Field East expansion project is expected to be ready for operations in November, according to people familiar with the plans.
The project’s progress, alongside the gradual return of Pearl-linked products, could help Qatar recover some of the supplies lost during the conflict. However, the outlook for a sustained recovery remains closely tied to regional stability and the uninterrupted movement of energy shipments.
