Qatar rules out Hormuz pipeline bypass and reshapes its sovereign wealth strategy

Qatar has dismissed the possibility of bypassing the Strait of Hormuz using pipelines, citing economic and technical reasons. Minister of State for Energy Affairs Saad Sherida Al-Kaabi stated that the alternative would necessitate new liquefied natural gas (LNG) facilities outside the country, which he deemed unfeasible. Neighboring countries have shown interest in facilitating an alternative route, but LNG cannot be transported through conventional gas pipelines; it requires conversion at the destination, a process that would duplicate existing facilities being built in Qatar.

Al-Kaabi dismissed US Treasury Secretary Scott Bessent's prediction that the strait could become "worthless" within two years, emphasizing the strait's role in trading various products. The North Field expansion aims to increase Qatar's LNG production capacity from 77 million tonnes a year to 142 million tonnes by 2030, with the first production unit of the North Field East project expected to start operating in the first half of 2027.

The North Field South project is set to commence production in 2028. While limited exports through the strait continued, undamaged units at Ras Laffan are projected to resume operations within weeks of Hormuz reopening, requiring three years for repairs to the gas-to-liquids unit. QatarEnergy anticipates becoming the world's largest LNG trader soon.

The disruption has adversely affected Qatar's economy, leading to a 7% drop in GDP year-on-year in the first quarter of 2026. However, Qatar's Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani unveiled a new investment platform called Doha Investment at the Qatar Economic Forum, pledging over $60 billion in projects and opportunities over the next five years.

The platform will oversee 45 companies representing roughly one-third of QIA's assets, spanning various sectors, including financial services, transport, technology, property, and healthcare.