Shell plc (SHEL Quick QuoteSHEL - Free Report) has partially restarted operations at its Pearl gas-to-liquids (“GTL”) facility in Qatar, marking progress toward recovering production capacity after the Iran war damaged the plant in March 2026, as per Reuters. The restart will enable Shell to build limited inventories of finished products, although shipments remain dependent on security conditions in the region. Meanwhile, QatarEnergy has begun returning Pearl-GTL naphtha cargoes to the market, offering some relief to buyers facing tight supplies of oil-based feedstocks.

The development is important for Shell because Pearl is a major component of the integrated gas business and supplies products to its downstream operations, including lubricants. However, the partial restart does not mean that the facility has returned to normal production. Repairs to one of its two processing trains remain underway, with completion expected in the first quarter of 2027.

Partial Restart Marks Progress Toward Recovery

Pearl GTL, based in Ras Laffan Industrial City, Qatar, converts North Field natural gas into liquid products, including gasoil, kerosene, base oils, naphtha and normal paraffins for the petrochemical industry.

Shell said the restart would allow it to build up a limited amount of product in storage. The company has not indicated that normal shipping operations have resumed. Its ability to maintain safe and reliable operations continues to depend on regional security and the availability of safe maritime routes.

Pearl GTL has a capacity of 140,000 barrels of oil equivalent per day. A March attack damaged Train 2, one of its two processing units, leading Shell to assess the facility's condition. The company had earlier projected that repairs would take about a year to complete.

The latest development therefore represents an initial recovery step rather than a complete restoration of the facility's operating capacity. The pace of further progress will depend on the repair schedule, operating conditions and the ability to transport products to customers.

QatarEnergy Resumes Naphtha Supply

Alongside Shell's partial restart, QatarEnergy has started offering cargoes containing Pearl-GTL naphtha through the spot market and resumed some contractual deliveries. These developments indicate that limited volumes are becoming available again following months of disruption.

Traders reported that QatarEnergy issued a spot tender offering as much as 50,000 metric tons of naphtha across four grades, including Pearl-GTL naphtha. The cargoes were offered on a free-on-board basis from Ras Laffan, meaning buyers would generally take responsibility for transportation after the cargoes were loaded.

Pricing remains relevant to buyers assessing the availability of alternative supplies. QatarEnergy's previous naphtha tender, which also included Pearl-GTL material, was awarded at a discount of $150 to Middle East benchmark quotations on a free-on-board basis. That figure relates to the earlier tender and should not be interpreted as the price for the latest offering.

The return of these cargoes could help petrochemical manufacturers obtain feedstock that became harder to source during the disruption. Nevertheless, the volumes available through the spot market do not establish that supply has returned to pre-war levels.

Indian Buyer Receives Contracted Cargo

The resumption of deliveries has also reached India. Haldia Petrochemicals received 50,000 metric tons of naphtha for the current quarter, stated by a company executive cited in market reporting, according to news.

The delivery provides a concrete example of how the gradual return of Qatari supplies could support customers in Asia. Naphtha is an important petrochemical feedstock, and interruptions in its availability can complicate procurement planning for manufacturers that depend on reliable shipments.

However, one delivery should not be viewed as evidence that regional supply constraints have been resolved. Availability will depend on subsequent cargo offers, contractual shipments and the ability of vessels to travel safely through the Strait of Hormuz.

Before the war-related disruption, roughly one-fifth of global oil and liquefied natural gas supplies passed through this strategic waterway. Restrictions on shipping have therefore affected energy markets well beyond Qatar, highlighting the exposure of regional producers and international buyers to geopolitical risks.

Repairs Remain Critical to Full Recovery

Shell's next major operational milestone is the expected completion of repairs to Train 2 in the first quarter of 2027. Restoring the damaged unit should help the facility move closer to its full operating capability, although the eventual production ramp-up and export schedule remain subject to operational and security conditions.

Pearl's importance extends beyond the sale of individual products. Its output contributes to Shell's downstream supply chain, including the lubricants business. A sustained recovery could improve product availability and support the integrated movement of materials through the company's operations. The extent of any financial benefit, however, will depend on actual production, sales volumes, operating costs and logistics.

Developments elsewhere in Qatar could also influence the broader recovery in energy supplies. QatarEnergy's North Field East liquefied natural gas expansion project is expected to have its first LNG train ready to begin operations in November 2026, with initial LNG production anticipated in the first quarter of 2027, according to people familiar with the plans cited in market reporting. This is a separate project from Pearl GTL and represents another potential step in restoring Qatar's energy output.

What it Means for Shell

The partial restart of Pearl GTL is an encouraging operational development for Shell, while the return of some naphtha cargoes offers support to buyers affected by supply shortages. The progress also demonstrates that production recovery and market normalization can occur in stages rather than simultaneously.

For Shell, the principal near-term priorities remain completing repairs, accumulating product inventories and maintaining safe operations. Until the damaged train is repaired and shipping conditions improve, the facility's contribution to the company's production and downstream supply chain may remain constrained.

Investors should therefore distinguish between the initial restart and a full recovery. The first milestone has been reached, but the timing and extent of the broader recovery will depend on repairs and regional security.

SHEL's Zacks Rank & Other Key Picks

Currently, SHEL sports a Zacks Rank #1 (Strong Buy).

Investors interested in the energy sector might consider other top-ranked stocks, such as Marathon Petroleum (MPC Quick QuoteMPC - Free Report) , Delek US Holdings (DK Quick QuoteDK - Free Report) , each sporting a Zacks Rank #1, and Oceaneering International (OII Quick QuoteOII - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.

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Delek US Holdings is valued at $4.63 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.

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