QatarEnergy Expands LNG Purchases to Profit From Possible Hormuz Shocks

what happened

QatarEnergy is locking in long-term LNG supplies from the US and other producers. CEO Saad Sherida Al-Kaabi told Reuters the company is building a trading strategy that would bring in revenue if exports through the Strait of Hormuz are disrupted.

According to Al-Kaabi, a closure of the strait would quickly lift gas prices, letting the company earn income it otherwise could not. A 20-year deal with Woodside covers 3 million tonnes per year from US facilities, and last week the company agreed with Cheniere Energy to supply up to 4 million tonnes per year through 2054. Together the deals total 7 million tonnes in two weeks.

Al-Kaabi said the strategy requires no capital spending and is far cheaper than building pipelines or new liquefaction trains. The company also relies on a fleet of about 200 LNG tankers and a trading unit that he said will soon become the world's largest gas trading platform.

why it matters

Qatar supplies about a fifth of global LNG exports, but it halted output in early March after Iranian missile attacks and has extended force majeure through the end of 2026. Al-Kaabi ties the trade to the gap between lower US gas prices and higher European ones. For markets, it signals that the risk of disruption through Hormuz remains a live factor for gas pricing.

market impact

LNG market: Hormuz disruption risk stays priced in, and the gap between US and European gas comes into focus

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