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Qatar’s LNG Exports Paralyzed by Hormuz Blockade and Ras Laffan Strike

Large state assets offer a cushion that the IMF says will not prevent a sharp contraction.

Overview

  • The Strait of Hormuz shutdown has left Qatar’s LNG tankers idle for more than two months and choked off most seaborne imports.
  • Within a day of the blockade, QatarEnergy said it could not fulfill supply contracts, signaling an immediate hit to export revenues.
  • Two weeks after the closure, Iranian missiles and drones struck the Ras Laffan liquefaction hub, cutting capacity by about 17% and pointing to repairs that will take years.
  • Food and other goods now arrive by air or by truck through Saudi Arabia, and heavy state subsidies have kept most price rises near 5% to 10% at supermarkets.
  • The IMF projects an 8.6% drop in GDP this year, and S&P kept Qatar’s sovereign rating, citing large fiscal and external assets despite collapsing tourism and business activity.