Qatar rules out pipelines, will keep relying on the Strait of Hormuz despite export disruption

# Overview QatarEnergy has ruled out constructing a pipeline to bypass the Strait of Hormuz and will continue to route liquefied natural gas (LNG) shipments through the strait. The decision comes amid significant disruption to shipments related to actions by Iran that constrained transit and forced Qatar to use alternative short-term measures.

# What happened

Qatar had faced speculation and proposals about building a bypass pipeline. Oman's energy minister suggested Oman could serve as a transit route for gas exports. QatarEnergy's CEO, Saad al-Kaabi, rejected that approach, saying "we have decided not to do pipelines. I think the decision in Qatar was based on commercial and technical [criteria], and we are only going to be using the strait." The company intends to continue shipping through Hormuz despite the risks and recent constraints.

# Operational and financial consequences Qatar has kept its LNG plants operating at reduced levels and has relied on available tankers for temporary storage. Limited tanker storage and constrained transit through Hormuz have pressured export schedules and revenue.

Compounding the challenge, Qatar's North Field East (NFE) expansion project has been delayed, with start-up pushed into the first half of 2027. That delay reduces near-term volume growth at a time when transit uncertainty already tightens export capacity.

# Options considered and why they were rejected

# Immediate measures and market signals To manage flows while Hormuz traffic is constrained, Qatar has loaded cargoes onto available tankers and run plants at lower output levels. The article mentions that Qatar has been running low on LNG tanker storage, suggesting limited buffer capacity if transit disruptions persist.

# Consequences for customers and geopolitics

# What to watch next

• Progress on the NFE expansion and whether start-up meets the new first-half-2027 timing.
• Levels of tanker storage around Qatar and whether additional ships or storage solutions are secured.
• Any change in QatarEnergy's position if commercial or technical conditions change, or if transit risks alter.
• Diplomatic and security developments in and around the Strait of Hormuz that affect shipping safety and insurance costs.

# Bottom line Qatar has rejected the pipeline bypass option and will continue to use the Strait of Hormuz for LNG exports despite recent, costly disruptions. The country is managing through lower plant output and limited tanker storage while its major expansion has been delayed into 2027.