QatarEnergy has warned that disruption in the Strait of Hormuz could delay parts of its North Field expansion, the huge gas development that Qatar is relying on to nearly double its liquefied natural gas (LNG) capacity by 2030. Critical equipment needed for the new facilities is still unable to reach the country.

The first North Field East liquefaction train remains scheduled to start production in the first half of 2027, but the timing of subsequent trains will depend on developments around Hormuz. Iranian strikes on Ras Laffan have already damaged two of Qatar’s 14 LNG trains and a gas-to-liquids plant, knocking out about 17% of the country’s LNG capacity. Repairs to the two LNG trains could take three years.

QatarEnergy turns to US LNG

QatarEnergy is also negotiating multi-year purchases of US LNG from producers including Venture Global, Cheniere and Woodside as it seeks to meet its contractual commitments, particularly to customers in Asia.

Its trading arm is seeking between 2 million and 3 million tonnes a year through 2031. QatarEnergy had previously relied largely on spot purchases of US LNG following the attacks on Ras Laffan. Around 12.8 million tonnes of annual capacity could remain offline for three to five years.

More than $60bn of projects at home

Qatar is pressing ahead with domestic investment plans. On Sunday, the government announced more than $60 billion in projects and investment opportunities over five years, including about $38.5 billion of infrastructure projects and $22.5 billion in expected private investment in real estate and hospitality.

The Qatar Investment Authority has also created Doha Investment, a new division dedicated to managing its domestic portfolio. It will initially oversee 45 state-owned companies representing roughly one-third of the sovereign wealth fund’s assets and seek to increase private-sector participation.

The domestic push does not mark a retreat from QIA’s overseas investments. On Monday, the fund and JPMorgan Asset Management announced a $20 billion partnership, including $15 billion in global equity portfolios and a further $5 billion initiative to finance US middle-market companies.

Washington looks for alternatives to Hormuz

The United States has proposed committing $5 billion to a fund designed in part to rebuild Gulf energy infrastructure damaged during the war and develop alternative routes that would reduce reliance on the strait. A plan reviewed by the Financial Times envisages a matching contribution from Arab partners, creating an initial $10 billion vehicle.

Qatar, however, has ruled out replacing its LNG export system with regional pipelines. “This makes no economic sense,” Energy Minister and QatarEnergy CEO Saad Al-Kaabi said, arguing that Qatar would have to pipe the gas elsewhere and then build new liquefaction facilities at the other end. Doha has rejected the option on commercial and technical grounds.

Al-Kaabi also rejected suggestions that Hormuz could become irrelevant. “It is wrong to call the Strait of Hormuz obsolete,” he said, noting that the waterway carries far more than oil and gas.

Doha calls for greater economic ties with Iran

Qatar is also advocating deeper economic ties with Iran. Foreign Ministry spokesman Majed Al Ansari on Monday called for greater “economic interdependence” between the two sides of the Gulf, alongside security guarantees for Arab Gulf states.

The two countries already share a direct energy link: Qatar’s North Field and Iran’s South Pars are two parts of the same vast offshore gas reservoir.