Exclusive report - Qatar Energy buys liquefied natural gas from the United States and other regions to guard against potential supply disruption in the Strait of Hormuz.

Andrew Mills/Maha El Dahan

Reuters Doha, October 29 - QatarEnergy CEO Saad Sherida Al-Kaabi told Reuters on Thursday that the company is procuring long-term supplies of liquefied natural gas (LNG) from the United States and other suppliers as part of building trading and arbitrage hedging strategies, allowing it to continue generating revenue in case future exports via the Strait of Hormuz are disrupted.

“If the Strait is closed—and that is exactly the real contingency we’re preparing for—gas prices will immediately skyrocket, and QatarEnergy would earn revenue that otherwise would not be possible,” said Kaabi, who is also Minister of State for Energy Affairs, when discussing the plan.

Kaabi’s remarks reveal for the first time how Qatar, one of the world’s largest liquefied natural gas producers, plans to offset revenue losses caused by a possible war with Iran, and hedge against the impact of potential future supply disruptions in the Strait of Hormuz on its income.

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