Regional tensions during the recent Iran conflict, together with concerns over the closure of the Strait of Hormuz, brought Qatar’s strategic importance as a stable liquefied natural gas (LNG) supplier into sharp focus. This was evident in its export relationships with key markets across Asia and Europe, where Qatar remains a vital energy lifeline. Although the conflict has since ended, the security of LNG and other hydrocarbon transit routes through the Strait of Hormuz remains a key consideration for global buyers, insurers and policymakers, highlighting the importance of safeguarding one of the world’s most critical energy corridors.
More broadly, Qatar’s energy and utilities sectors are central to the achievement of Qatar National Vision (QNV) 2030 goals, with upstream and downstream production expansion designed to provide the necessary revenue for economic diversification. Geopolitical upheaval in recent years has altered global energy value and supply chains, with Qatar one of the few beneficiaries due to its vast natural gas reserves, making it an attractive trade partner in the wake of certain European countries’ boycott of Russian gas.
However, the outbreak of the Iran conflict in February 2026 has altered Qatar’s near-term energy outlook. According to local media, Iranian retaliatory missile strikes on Qatar’s Ras Laffan Industrial City (RLIC) in March 2026 damaged approximately 17% of QatarEnergy’s (QE) LNG export capacity, while the closure of the Strait of Hormuz disrupted Qatar’s ability to ship hydrocarbons to international markets. Expansion of the North Field and modernisation of the shipping fleet have driven Qatar’s growth in recent years, but the conflict disrupted production and delayed Ras Laffan’s development timeline. Nonetheless, Qatar is expected to retain its importance within global energy markets. Beyond hydrocarbons, the crisis has underscored the country’s need to diversify its energy infrastructure and accelerate sustainability initiatives, creating opportunities in areas such as power and water generation.
Structure & Oversight
The Supreme Council for Economic Affairs and Investment (SCEAI) oversees broad economic development, investment strategy and the sovereign wealth fund Qatar Investment Authority (QIA). Due to the central importance of the energy-related business to Qatar’s economy, the SCEAI is the highest authority involved in energy sector development and strategic decision-making.
Qatar General Electricity and Water Corporation (Kahramaa) regulates the utilities sector. Kahramaa is Qatar’s exclusive offtaker of electricity and water, and owns the country’s sole electricity and water transmission and distribution systems. It is also responsible for regulation of Qatar’s independent power and water producers (IWPPs) and, since 2025, its district cooling sector. Kahramaa carries out tendering processes, contracting new IWPPs in line with the utility needs of the country’s population and with national strategic goals. Foreign investors can bid on IWPP tenders, with deals structured as public-private partnerships (PPP), generally with government-owned energy and utility operators as senior shareholders.
Water Maintenance
The Permanent Water Resources Committee comprises various government ministers and significant figures from the energy and utilities sectors with Kahramaa to guide water-related policy-making. In October 2025, Kahramaa launched Law No. 23 of 2025 to aid Qatar’s bid to enhance water security and protect the country’s natural resources. Long-term water security is a constant challenge due to the desert climate and effective, sustainable management of finite supplies underpins the new law. “In Qatar, water security is really both a strength and a vulnerability. We have excelled in creating world-class desalination plants,” Rhana Kurdi, CEO of Skydrops, told OBG. “However, any increase in energy costs or supply chain disruption presents challenges for water security. Considering Qatar’s geographic conditions, atmospheric water generation is therefore the most innovative way forward for providing reliable water for the country.” Additionally, as of February 2026, Qatar implemented a new technical water conservation regulation where all water-consumption products must carry the GCC Green Label. This applies to various domestic and commercial products involved in the control of water usage – such as shower heads and water taps – for responsible consumer purchasing.
Key Operators
Government-owned QE is Qatar’s largest energy-related company and primary hydrocarbons industry operator. It owns RLIC, Mesaieed Industrial City (MIC) and the Dukhan Concession Area. A 2018 merger between Qatargas and Ras Gas saw QatarEnergy LNG (QE LNG) created, which operates 14 LNG trains. However, the regional conflict with Iran has proved to be a setback. In March 2026 two of those trains – four and six – were severely damaged in Iranian missile strikes on Ras Laffan. The authorities estimate that the facilities would be offline for between three and five years as they undergo repairs.
Facilities and companies operating under these joint ventures include the Laffan Refinery Company, Barzan Gas – which supplies pipeline gas to local industries and the power generation sector – and Ras Laffan Helium. Additional QE subsidiaries include low-sulphur diesel producer Oryx GTL – which is 49% owned by South African chemical manufacturer Sasol – QE-TotalEnergies joint venture (JV) North Oil Company (NOC) and QE-Shell gas-to-liquids (GTL) JV Pearl GTL, which operates the world’s largest GTL facility in RLIC. Pearl GTL also sustained damage in Iranian missile strikes on Ras Laffan in March 2026; one train at the facility is expected to be off line for at least a year, according to Shell. In addition, major foreign players in Qatari hydrocarbons operations include ExxonMobil and Malaysia-headquartered Wasco, among others.
Strategy
Natural gas continues to be viewed as both a transition fuel and as a cornerstone of global energy security, especially amid heightened geopolitical volatility and persistent concerns over supply-chain disruption. As such, the revenue Qatar generates from its increased production (primarily through LNG capacity and export expansion) is being directed towards the diversification drive. Progress towards realisation of QNV 2030 goals is currently being guided buy the Third National Development Strategy (NDS-3). Kahramaa launched the Qatar National Renewable Energy Strategy in 2024, with objectives designed to boost sustainable energy production across multiple dimensions. Meanwhile, QE, Nebras Energy and QIA shape their own strategies to help the country achieve overarching socioeconomic objectives, actively investing in and working to attract both domestic and foreign investment into Qatar’s energy-related value and supply chains.
Size & Performance
The real GDP for mining and quarrying – the category in which upstream hydrocarbons activities are recorded by the National Planning Council (NPC) – came in at QR257bn ($70.5bn) for 2024, an increase of 0.5% compared to 2023. Total real sector GDP for the first three quarters of 2025 came in at QR193bn ($53bn), 0.2% lower than for the corresponding period of 2024. On average, the sector accounted for approximately 35.7% of GDP between the first quarter of 2024 and the third quarter of 2025. Although this marked a substantial decline from its 53.2% share and contribution of QR400.5bn ($110bn) in 2014, it remains the largest individual sector of the economy. Higher figures for 2014 reflect not only significantly higher hydrocarbons prices at that time but also the success of the diversification drive, with the non-hydrocarbons economy contributing progressively more to GDP each year. Production increases along hydrocarbons value chains in the years since 2014 also resulted in a proliferation of new hydrocarbons-related businesses. Analysis firm Mordor Intelligence estimated that Qatar’s hydrocarbons market had reached a size of $30.4bn by early 2026, forecasting a compound annual expansion of just above 4%, with the market expected to reach around $37bn by 2031.
The NPC lists utilities as electricity, gas stream and air conditioning supply; and water supply, sewerage, waste management and remediation activities. The sector grew by 16.2% between 2023 and 2024, from QR12bn ($3.3bn) to QR14bn ($3.8bn). Expansion continued for the first three quarters of 2025, with the sector registering GDP of QR10.6bn ($2.9bn) for that period, 3.5% higher than the corresponding period of 2024. While that represents significantly slower growth than during 2023-24, quarter-over-quarter (q-o-q) expansion averaged 11.4% between the fourth quarter of 2024 and the third quarter of 2025.
Qatar’s power market is forecast to expand from $2.2bn in 2024 to $4.4bn by 2033. Anticipated growth drivers include the government’s strategic large-scale energy project pipeline, solar-generated electricity, upgrades to the national grid and supporting infrastructure, and inevitable increases in energy demand.
Revenue & Exports
Qatar’s 2026 government budget presented an estimated total annual revenue of QR199bn ($55bn), with income from hydrocarbon industries and exports expected to account for QR144bn ($39.5bn), which would roughly equal the confirmed hydrocarbon revenue from the previous year. Revenue forecasts were based on a conservative oil price assumption of $55 per barrel.
However, Brent crude subsequently surged well above $100 per barrel following the outbreak of the Iran conflict in late February 2026, with prices briefly exceeding $119 per barrel in March 2026. Additionally, supply disruptions and the closure of the Strait of Hormuz have injected significant uncertainty into both price and export volume projections for the year. Iranian missile strikes on Ras Laffan’s LNG trains in March 2026, which represent approximately 17% of QE’s export capacity, have forced QE to declare force majeure on long-term contracts with buyers in China, South Korea, Italy and Belgium for up to five years. QE estimates an annual lost revenue of approximately $20bn. This situation was further compounded by the closure of the Strait of Hormuz, through which virtually all of Qatar’s LNG exports transit. Meanwhile, future capacity expansion is also designed to leave significant uncontracted surplus for trade on global spot markets, further boosting national liquidity. In 2024, Qatar’s export receipts for petroleum gas, crude petroleum and refined petroleum amounted to $77.6bn, with those products accounting for $44.6bn, $21bn and $12bn, respectively (see Trade & Investment overview).
QE revenue reached QR168bn ($46bn) in 2024, compared to QR159bn ($4.6bn) in 2023, posting operating profit of QR96bn ($26bn), notably lower than QR106bn ($29bn) in 2023. Nebras Energy posted revenue of QR2.3bn ($631m) and profit of QR1bn ($274m) for the first nine months of 2025, compared to revenue of QR2.3bn ($631m) and profit of QR1.2bn ($329m) for the corresponding period of 2024.
Foreign Ownership Opportunities
Many areas of Qatar’s economy were opened up to 100% foreign business ownership in 2019. However, a minimum of 51% of local ownership is required in the energy and natural resources sector, along with any related strategic infrastructure. That said, the government retains the right to decide foreign ownership percentages on a case-by-case basis. Dolphin Energy, which is 51% owned by Abu Dhabi’s Mubadala sovereign wealth fund, is a key operator in Qatar’s energy sector, with TotalEnergies and US firm Occidental Petroleum accounting for the remaining stake. Meanwhile, whereas 10% corporate tax applies in most sectors, foreign entities operating IWPPs or in hydrocarbons-related industries in Qatar are subject to a 35% corporate tax.
Foreign involvement in upstream hydrocarbons activity is generally structured under production sharing, exploration and development agreements, which see QE partnering – generally as majority stakeholder – with international oil and gas companies. Government authorisation is required for all exploration and production partnerships. QE generally maintains operational and strategic oversight throughout the term of any deal. Agreements are also often structured to allow QE to recover costs and expenditure from eventual revenue. The duration of the various types of deal structure varies, with exploration periods commonly in the range of four to seven years and production contracts typically lasting between 20 and 30 years. Long-term control and ownership of hydrocarbons resources always remains with the government.
Public-Private Partnerships
Foreign investment in IWPPs is typically structured through PPPs, under which international companies or consortia can build and operate utility-scale water and power facilities, while Kahramaa purchases their output under long-term contracts. A dedicated PPP law was implemented in 2020, but foreign involvement in IWPPs predates that. Bidders must prove, among other criteria, the financial and operational capacity to help Qatar meet its utilities production needs.
Renewable energy generation, waste-water and waste-to-energy projects are set to increase in both scale and number, while proliferation of foreign energy services companies under PPPs is also being explored by the government to enhance energy efficiency and smart utilities uptake. Such arrangements could see qualified private firms upgrade energy-related infrastructure – such as street lighting – and be paid from resulting energy cost savings, with successful regional examples set in Abu Dhabi. Foreign investors can also participate in Qatar’s hydrocarbons industry as manufacturers and suppliers of oil and gas field machinery, equipment and supplies, sector-relevant smart digital and green energy technologies, among many other manufacturing lines and services directly and indirectly connected to the energy sector. An array of investment opportunities are offered through QE’s supply chain localisation programme Tatween.
Upstream
As of 2025, Qatar’s proven oil reserves of over 25.2bn barrels were the 14th largest in the world. Daily production of 1.8m barrels per day (bpd) in 2024 marked a 1.2% increase over 2023, according to the Energy Institute’s 2025 Statistical Review of World Energy. Daily production fell by an annual average of 0.5% during the period 2014-24. The aforementioned daily production total for 2024 meant Qatar accounted for nearly 2% of the total global production that year. Domestic consumption of 397,300 bpd in 2024 gave the country a daily surplus of more than 1.4m bpd, 78% of Qatar’s total oil production.
Qatar’s oil fields are all mature, so production rates have declined in recent years. With 300, 000-bpd capacity, the NOC-operated Al Shaheen oil field is the country’s largest, accounting for around half of Qatar’s oil production. Although production has dipped in recent years, enhanced oil recovery (EOR) initiatives are ongoing, with the third phase of a major production expansion project set to add 100,000 bpd to Al Shaheen’s output by 2027, for a maximum capacity of 380,000 bpd. Al Shaheen also produces associated gas at an estimated rate of 6.2m cu metres per day.
EOR projects are underway elsewhere in Qatar, with the Bul Hanine field set to receive a 60,000-bpd boost to daily production by 2028. In January 2024 Chinese firm Offshore Oil Engineering Company secured a QR2.2bn ($600m) contract to develop the Idd-El Shargi field with the aim of maintaining production capacity at 100,000 bpd for six years. The onshore Dukhan field is also undergoing modernisation with various EOR techniques such as enhanced water flood and water-alternating-gas either being utilised or slated for implementation to boost oil production by 2028. In 2023, the most recent year for which QE has provided data on individual fields, Dukhan produced 176,700 bpd of oil and 224m cu feet per day of gas on average.
Qatar’s proven gas reserves of 843trn cubic feet are the third largest in the world, behind Russia and Iran, and account for 11% of the proven global reserve. Natural gas production totalled 179.5bn cubic metres in 2024, making Qatar the world’s fifth-largest producer. Output was 1.1% lower than the previous year’s level and accounted for 4.4% of global production. Over the period 2014-24, Qatar’s natural gas production increased by an average of 0.6% per year. It is the country’s North Field (with resources shared with Iran) that has driven Qatar’s increasing prominence in global energy trade and value chains. With estimated reserves of over 2000trn cu feet of natural gas – 900trn of which is currently believed recoverable – the 6000-sqkm field is Qatar’s largest hydrocarbons reserve and the largest non-associated gas field in the world. QE is in the process of expanding North Field upstream production, which in turn is expected to boost production and activity at subsequent stages of the value chain.
LNG
Qatar is one of the world’s largest exporters of LNG, accounting for nearly 20% of the global total in 2024. Once complete, the $40bn North Field expansion project will raise Qatar’s LNG production capacity by 85% from 77m tonnes per annum (tpa) to 142m tpa by 2030. That is expected to see Qatar account for 25% of global LNG supply. The first phase of the project, North Field East, will see four new LNG trains come on line by 2028, one year later than previously expected. The first of the four was set to begin production during the second half of 2026 – again around a year later than originally planned – and will mark Qatar’s first LNG capacity expansion since 2010, bringing capacity up to 85m tpa. These timelines, however, are now subject to further uncertainty. The March 2026 Iranian strikes on Ras Laffan halted all expansion construction work, and analysts warn that repairs to the damaged trains could strain the same labour and materials needed for the North Field projects, potentially delaying the overall expansion by more than a year. As of April 2026, contractors, including Chiyoda Corporation, were assessing whether to return personnel to the site following a fragile ceasefire in the Iran conflict.
The remaining three trains are expected to increase production to 126m tpa once they are operational. The North Field West development will bring capacity up to the aforementioned 142m tpa, with QE LNG awarding the front-end engineering contract to Japan’s Chiyoda Corporation in January 2026. In addition to LNG production, the North Field also supplies fuel to Dolphin Energy, whose two offshore platforms and pipeline networks transmit gas to its facility in RLIC, from where 2bn cu feet per day of stripped lean gas is piped to neighbouring Oman and the UAE.
Midstream & Downstream
Qatar’s total oil refining capacity stood at 443,000 bpd in 2025, according to the US Energy Information Administration. However, during the period 2014-24, the country’s refinery throughput rose by around 52%. Mesaieed Industrial City and RLIC are integral to Qatar’s downstream hydrocarbons industries. They are both crucial nodes in midstream operation, with their transmission and distribution systems directly supplying power stations, ports and industrial facilities throughout the country. MIC houses QE’s 127,000-bpd refinery. Feedstock consists of crude oil from Dukhan and condensate from both Dukhan and the North Field.
The refinery’s product line includes gasoline, diesel, liquefied petroleum gas (LPG), naphtha and jet A-1. In 2024, it achieved its highest-ever gasoline production of 68,720 bpd. MIC also houses QE’s natural-gas-to-liquids facility and the Mesaieed Terminal and Tank Farm. RLIC is home to the Pearl GTL facility, while a $6bn integrated olefins and polyethylene facility being developed in partnership with Chevron Phillips Chemical Company broke ground in February 2024, which was originally expected to go on line in 2026. However, activities at RLIC were disrupted following Iranian missile strikes on the complex, which caused extensive damage to LNG and GTL infrastructure. The full operational and construction implications for other RLIC facilities remain under assessment at the time of writing.
Utilities
According to Kahramaa’s 2024 annual report, Qatar’s IWPPs generated around 58,500 GWh of electricity in 2024, marking an annual uptick of 0.4% and average expansion of 3.3% for the period 2020-24. Gas fuelled around 80% of Qatar’s energy consumption, while according to Kahramaa’s estimates, renewables contributed around 5% in 2025. Meanwhile, contracted capacity of the country’s IWPPs was 10,570 MW in 2024. Maximum demand rose during that same period by an annual average 3.8% from 8600 MW in 2020 to 10,220 MW in 2024. The number of billed electricity customers rose by an annual average of 4.9% during 2020-24 from 433,750 to 520,550.
The number of water customers in Qatar billed between 2020-24 underwent similar expansion, rising 4.8% on average each year, from 382,930 to 459,600 over that period. Total water production rose by 1% in 2024 and by an average of just below 0.2% over that same five-year period. Total water production in 2024 was 676m cu metres, with a maximum daily production of 2m cu metres. And while the amount of potable water used for district cooling rose from 4.2m cu metres in 2020 to 4.7m cu metres, the amount of non-potable water utilised for that purpose increased by over 84% during that same period, from 8.8m cu metres to 16.2m cu metres, reflecting the country’s rising efficiency in wastewater utilisation.
Nebras Energy is a 55% stakeholder in the under-construction Ras Abu Fontas IWPP, named Facility E, under a $3.7bn agreement signed May 2025. The company had previously signed a 25-year power and water offtake agreement with Kahramaa for the project. When fully operational, the new plant will provide 2.4 GW of power and 110m imperial gallons per day of desalinated water, accounting for an anticipated 23% of total national electricity production and 20% of total water output. Three-phase commissioning is slated to commence in 2028. QE holds a 5% ownership stake, while the remaining 40% is shared between Luluah Sky Energy Holding consortium, comprising Japanese firms Sumitomo Corporation (17%) and Shikoku Electric (11%), and various Korean entities.
In January 2026, Mitsubishi Power was awarded the contract to supply gas turbines for Facility E and also provide parts and services throughout the plant’s lifecycle. South Korean firm Doosan Enerbility increased its involvement in Qatar’s utilities sector in March 2025, securing the contract to supply the project with steam turbines and generators. Additionally, in March 2025, Doosan Enerbility became head of a consortium which includes Power China to secure engineering, procurement and construction rights for a $440m, 511 MW single-cycle, peak-demand gas turbine electricity generation plant at Ras Abu Fontas, with commissioning set for early 2027. The consortium is footing $200m for a 45% stake, with Nebras Energy the senior shareholder.
Outlook
The 2026 Iran conflict has significantly reshaped Qatar’s near-term energy outlook. Strikes on Ras Laffan and the closure of the Strait of Hormuz have posed an unprecedented threat to global energy security. While these developments have created shortterm disruption and instability, Qatar’s longer-term position in global LNG markets remains underpinned by the scale and strategic importance of its North Field reserves. The pace of recovery and future growth will now likely be shaped by the speed of infrastructure repairs, the durability of any ceasefire and normalisation of transit conditions through the Strait of Hormuz.
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