Japan’s Chiyoda Corp weighs restarting Qatar LNG project work after U.S.-Iran ceasefire

Japan’s Chiyoda Corp is considering resuming on-site work for Qatar’s liquefied natural gas (LNG) project based on the current situation after the United States and Iran agreed on a temporary ceasefire.

“Based on the situation so far, we are considering the resumption of on-site work for the LNG project in Qatar,” a spokesperson from the company told Bloomberg on Wednesday.

Iran has attacked vital energy infrastructure, including ones in Qatar, since the war with the U.S. and Israel broke out on 28 February.

On 2 March, Qatar’s Ministry of Defence announced that two Iranian drones targeted a water tank and an energy facility in the country. 

One drone targeted a water tank belonging to a power plant in Mesaieed, and the other targeted an energy facility in Ras Laffan Industrial City, belonging to QatarEnergy, without reporting any human casualties.

Consequently, QatarEnergy ceased LNG production and associated products, and on 4 March declared force majeure to its affected buyers. Then on 1 April, Iran attacked Aqua 1, a fuel oil tanker on charter to QatarEnergy, in Qatar’s economic waters without casualties.

Chiyoda is among various companies involved in the construction of Qatar’s North Field Expansion project, the largest of its kind in the industry. 

In 2021, QatarEnergy (then Qatar Petroleum) secured major contracts for the project, where the engineering and construction contract for the first phase of its expansion was given to a joint venture of Chiyoda and Technip.

Ceasefire announced

The Pakistan-brokered two-week ceasefire was announced in the early hours of Wednesday, ahead of a deadline set by U.S. President Donald Trump for Iran to agree to a deal. 

Trump had issued a threat on Truth Social on Tuesday, saying that “a whole civilisation will die tonight” before agreeing to the ceasefire.

“I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double sided ceasefire! The reason for doing so is that we have already met and exceeded all military objectives,” Trump said in a statement on Wednesday.

Pakistan has assumed a pivotal role since the war broke out, holding talks with officials globally in an effort to reach a deal. Two days of discussions took place in Islamabad in late March between foreign ministers from Pakistan, Saudi Arabia, Egypt, and Türkiye.

Then, on 31 March, China and Pakistan announced a five-point initiative aimed at restoring “peace and stability” in the Middle East.

Meanwhile, Iran’s National Security Council said talks with the U.S. will begin in Pakistan’s capital on Friday.