Qatar is ramping up liquefied natural gas exports as prices surge

Qatar is increasing LNG exports by finding ways around major shipping risks during wartime. The goal is to send more gas before Northern Hemisphere winter, when prices are surging and inventories are shrinking. More supply could ease pressure on energy markets.

One tanker is sailing toward Poland through the Red Sea. At least 20 other shipments have passed through the Strait of Hormuz since early September. Qatar may also be using a “Hormuz shuttle,” transferring LNG between ships rather than having one tanker complete the whole journey.

The strategy is difficult because LNG must remain extremely cold. Bloomberg tracked Al Rayyan transferring its cargo in the Gulf of Oman before returning to Ras Laffan to reload. QatarEnergy restored exports in September to about a third of prewar levels, showing that risky logistics are producing results.

Liquefied natural gas, or LNG, is natural gas cooled until it becomes a liquid. The article identifies the required temperature as minus 162°C, or minus 260°F. At that temperature, gas takes up far less space than it does in its normal gaseous form.

That volume reduction is the key reason producers liquefy gas for export. Specialized tankers can carry large quantities in insulated tanks instead of relying only on fixed pipelines. The cargo must stay extremely cold throughout loading, transfers, and the voyage.

LNG matters here because Qatar is trying to move gas across difficult maritime routes. Bloomberg reported that Qatar’s ship-to-ship transfer required cryogenic hoses. After arrival, LNG is normally warmed at a receiving terminal and changed back into gas for use. These final regasification steps are general LNG practice, not details provided in the article.

QatarEnergy restored LNG exports in September to about a third of the level reached before the war. That recovery is significant because Qatar is operating under major shipping constraints while gas prices rise and inventories fall ahead of winter.

The article also reports that at least 20 more shipments passed through the Strait of Hormuz to other destinations since early September. One additional tanker was sailing toward Poland through the Red Sea. These movements show that exports are continuing through several complicated routes.

The figures do not mean Qatar has fully returned to normal export volumes. They show a partial recovery supported by creative shipping arrangements. Qatar’s prime minister said buyers had negotiated passage with Iran for cargoes moved during the war’s first six months, while Qatar also appears to be using ship-to-ship transfers in the Gulf of Oman.

Additional Qatari LNG could increase gas supplies while prices are surging and inventories are dwindling before winter. More available fuel can reduce scarcity in energy markets. That may help slow the rise in consumer prices, especially where gas affects electricity, heating, transport, and production costs.

The article directly links Qatar’s exports to two possible outcomes: helping halt the surge in consumer prices and slowing the decline of Qatar’s economy. Qatar has a $200 billion economy, and the IMF expects it to contract by 15.6% this year. Restored exports could bring in revenue and support economic activity.

The effect is not guaranteed or immediate. Qatar has recovered only about a third of prewar LNG exports, and shipping remains complicated. Still, every successful cargo adds supply. If more shipments reach buyers before winter, the added gas could ease market pressure while improving Qatar’s economic position.

The Red Sea, Strait of Hormuz, and Gulf of Oman matter because they form parts of the maritime routes linking Gulf energy producers with international customers. A tanker must navigate these waters to move LNG from Qatar toward destinations such as Poland. Any danger or restriction can delay cargoes and reduce available supply.

The article gives a clear example. One tanker was sailing toward Poland through the Red Sea, while at least 20 shipments passed through the Strait of Hormuz. Bloomberg also tracked Al Rayyan transferring cargo to another ship in the Gulf of Oman before returning to Ras Laffan.

Together, these routes allow Qatar to keep exporting despite wartime risks. They are also chokepoints where safe passage matters. The article does not describe every specific threat in each waterway, but it shows that route access directly affects Qatar’s ability to restore LNG shipments.

The “Hormuz shuttle” is a shipping workaround that divides a cargo’s journey between vessels. One tanker carries LNG from Qatar, transfers it to another ship in or near the Gulf of Oman, and then returns to Ras Laffan to reload. This can keep export operations moving when direct voyages are risky or restricted.

Bloomberg tracked Al Rayyan, one of Qatar’s oldest LNG tankers, using this method. The vessel transferred its cargo to another ship in the Gulf of Oman before heading back to Ras Laffan. The transfer required cryogenic hoses because LNG is chilled to minus 162°C.

Qatar may choose this approach to avoid sending the same tanker through the entire exposed route. It also lets the returning vessel reload sooner while another ship continues toward the buyer. The process is more complex than transferring oil, but QatarEnergy restored exports to about a third of prewar levels.

Natural gas is extracted from underground rock formations through wells and then processed to remove water and unwanted compounds. It is cooled in a liquefaction plant to about minus 162°C, the temperature at which it becomes LNG. The article gives this temperature as minus 260°F.

Once liquefied, the gas occupies much less space and can be loaded into insulated, cryogenic tanker tanks. The ship keeps the cargo cold during the voyage. Qatar’s transfers are especially demanding because cryogenic hoses must handle the extremely cold liquid. Bloomberg reported such a transfer involving Al Rayyan in the Gulf of Oman.

At the receiving country, the LNG is unloaded and warmed in a regasification terminal. It expands back into natural gas, which can enter pipelines for consumers and businesses. The article focuses on Qatar’s shipping journey; the extraction and regasification steps are standard LNG processes that it does not describe in detail.