Qatar seeks broader influence through a diversified energy portfolio

Qatar’s energy diplomacy has long been associated with liquefied natural gas, but its strategy now extends across a wider range of products and value chains.

North Field expansion is expected to increase Qatar’s LNG production capacity from 77 million tonnes per year to 142 million tonnes by 2030. The expansion will also produce additional ethane, condensates, liquefied petroleum gas and helium, allowing Doha to use its large gas reserves to serve markets with different commercial and strategic needs.

The diversification is primarily a broadening of products and value chains rather than a shift away from hydrocarbons. According to the US Energy Information Administration, natural gas accounted for 77.7 per cent of Qatar’s primary energy consumption in 2023, oil and petroleum liquids for 22.3 per cent, and renewables for 0.1 per cent.

Fertilisers are one area where Qatar aims to deepen its strategic relevance. QatarEnergy plans to increase annual urea production from around six million tonnes to more than 12.4 million tonnes, linking the expansion to global food security. Helium provides another specialised source of influence. The US Geological Survey estimated that Qatar was the world’s second-largest helium producer in 2024, accounting for 35 per cent of global production. Helium is used in semiconductor manufacturing, medical imaging, aerospace and scientific research.

Qatar’s influence also rests on infrastructure. The Dolphin Gas Project transports around two billion standard cubic feet of Qatari gas per day to the United Arab Emirates and Oman, supporting power generation, water desalination and industry. Long-term pipeline connections can create deeper interdependence than individual spot-market cargoes.

Doha is adding a lower-carbon element to the portfolio. Its operational renewable capacity reached 1,675 megawatts in 2025, and QatarEnergy is targeting 4,000 megawatts by 2030. The company is also developing lower-carbon ammonia and expanding carbon capture and storage. Its targets include reducing Scope 1 and 2 carbon intensity by 35 per cent at LNG facilities and 25 per cent in upstream operations by 2035, compared with 2013 levels.

These initiatives do not make Qatar a post-hydrocarbon energy power. They are intended to reduce the emissions intensity of producing and processing hydrocarbons while Qatar continues to expand its export system.

Qatar has made the greatest progress in diversifying its products and markets, with customers and partners across Asia, Europe and the Gulf. Its overseas assets are also expanding. QatarEnergy is a major shareholder in Golden Pass LNG in Texas, which has production capacity of more than 18 million tonnes per year.

Export-route diversification remains more limited. The 2026 crisis damaged Ras Laffan and knocked out around 17 per cent of Qatar’s LNG capacity. Disruption around the Strait of Hormuz also complicated equipment deliveries and created uncertainty around expansion schedules. The disruption prompted LNG buyers and sellers to reassess the importance of diversifying both suppliers and routes.

A broader product portfolio can reduce Qatar’s exposure to volatility and dependence on a single commodity, but it cannot eliminate the risks created by geography. Much of the country’s production and exports remains concentrated around Ras Laffan and Gulf shipping lanes.

Qatar’s future influence is therefore likely to depend on how effectively it uses gas as a platform for entering multiple strategic value chains. LNG can support energy security, fertilisers food security, helium advanced industries, petrochemicals manufacturing, and solar power, ammonia and carbon capture emerging lower-carbon markets.

The strategic value of this portfolio will depend not only on the number of products Qatar exports, but also on how difficult those supplies are to replace, how durable its relationships become and whether its export routes grow more resilient. Product diversification can broaden Qatar’s influence, but its full impact will depend on combining it with wider markets, overseas assets and stronger transport security.