Qatar searches for strategic LNG hedge
QatarEnergy has adopted the “Hormuz shuttle” tactic used by regional crude exporters. Most of Qatar’s gas remains trapped in the Gulf, but Doha is finding ways to export more of it while securing US supplies to meet some of its commitments. QatarEnergy has adopted the “ Hormuz shuttle ” tactic used by regional crude exporters, lifting LNG shipments from almost nothing in March to around a third of pre-war levels last month. It’s also on pace to become the biggest buyer of US LNG by 2033, the Financial Times reported, citing research firm Wood Mackenzie. To recover roughly $4 billion in lost monthly revenue, Jim Krane and Alex Munton argue in a Baker Institute paper that Qatar should pursue a “ strategic hedging strategy,” focused on improving commercial relations with Iran and Oman, attracting Chinese equity investment, and reinforcing security ties with Washington through Al Udeid Air Base. Doha appears to be following that playbook, but it’s not without risk. A tanker that was reportedly granted safe passage through Iranian waters, destined for Pakistan, was struck last week, while the alternative Hormuz route still depends on US military protection.
QatarEnergy has adopted the “Hormuz shuttle” tactic used by regional crude exporters. Most of Qatar’s gas remains trapped in the Gulf, but Doha is finding ways to export more of it while securing US supplies to meet some of its commitments. QatarEnergy has adopted the “ Hormuz shuttle ” tactic used by regional crude exporters, lifting LNG shipments from almost nothing in March to around a third of pre-war levels last month. It’s also on pace to become the biggest buyer of US LNG by 2033, the Financial Times reported, citing research firm Wood Mackenzie.
To recover roughly $4 billion in lost monthly revenue, Jim Krane and Alex Munton argue in a Baker Institute paper that Qatar should pursue a “ strategic hedging strategy,” focused on improving commercial relations with Iran and Oman, attracting Chinese equity investment, and reinforcing security ties with Washington through Al Udeid Air Base. Doha appears to be following that playbook, but it’s not without risk. A tanker that was reportedly granted safe passage through Iranian waters, destined for Pakistan, was struck last week, while the alternative Hormuz route still depends on US military protection.