By Andrew Mills and Maha El Dahan
DOHA, Oct 29 (Reuters) – QatarEnergy is buying long-term supplies of liquefied natural gas from the US and other suppliers as part of a strategy to build a trading and arbitrage hedge that would generate revenue if exports through the Strait of Hormuz are disrupted in the future, CEO Saad Sherida Al-Kaabi told Reuters on Thursday.
“In a scenario where you have a closure of the strait, which is the true contingency that we’re looking to have, you’d immediately see a spike in gas price and you’ll be able to generate revenue for QatarEnergy that otherwise wouldn’t be generated,” Kaabi, who is also the minister of state for energy affairs, said of the plan.
Kaabi’s remarks reveal for the first time how Qatar, one of the world’s largest LNG producers, plans to offset lost income from the Iran war and protect revenue against future disruptions in the Strait of Hormuz.
(Reporting by Andrew Mills in Doha and Maha El Dahan in Dubai. Editing by Mark Potter)
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