Key facts
- QatarEnergy is acquiring long-term LNG supplies from the U.S. and other sources.
- The strategy aims to hedge against future disruptions in the Strait of Hormuz.
- CEO Saad Sherida Al-Kaabi said the plan would generate revenue for QatarEnergy in case of a strait closure.
QatarEnergy is acquiring long-term liquefied natural gas (LNG) supplies from the U.S. and other sources as part of a strategy to build a trading and arbitrage hedge. CEO Saad Sherida Al-Kaabi told Reuters on Thursday that the plan is designed to generate revenue for QatarEnergy in the event of future disruptions to exports through the Strait of Hormuz. Al-Kaabi, who is also the minister of state for energy affairs, explained that a closure of the strait would immediately cause a spike in gas prices, allowing QatarEnergy to generate revenue that would otherwise not be realized. The remarks reveal how Qatar, a major LNG producer, intends to offset potential lost income and protect revenue against future disruptions in the vital shipping lane.