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00:00I've known you, Your Excellency, since you added the energy minister to your role on top of running Qatar Energy.
00:07Since the time I've known you, have you ever seen a crisis quite like this?
00:12No, I think to have a complete shutdown of all our oil and gas facilities and petrochemicals
00:18and all the host of things that we produce and all of them to come down to zero in one
00:25go
00:25is unprecedented, not only in Qatar, but in any country that produces oil and gas.
00:31So this is really uncharted territory and we've never seen something like this before.
00:37What was March 18th and 19th like for you and your team?
00:42March 18th and 19th like for you and your team?
00:46It was a very difficult time for us and of course we were trying our best to cope with that.
00:56What are the repairs looking right now at Rossi?
00:59You know, I mean, the hit that we took was basically to two LNG trains and one GTL train.
01:07So three of our facilities were damaged.
01:10One of them, which is the GTL, should be repaired by the first quarter of 2027.
01:17The two other trains went on their way to be repaired and hopefully they will be back into operation within
01:27the next three years.
01:29Next three years.
01:30You originally said three to five years, so you think actually it's going to be closer to the three years?
01:35First, because we were able to work with our partners, APCI, who are the sole manufacturers of cold boxes, to
01:42bring that forward as much as possible.
01:44And, you know, so we see it more three years than five.
01:49So not only are you unable to really export product right now, but that hit took out about 17%
01:55of your LNG capacity, right?
01:57Yeah, it took out, of course, it's LNG, but it's also LPG, it's sulfur, it's condensate, it's a host of
02:04other products that we produce at the same facility.
02:07So it did give us a big blow, if you will, for our production capability for the next few years.
02:13Can you give us a sense of how much LNG you're actually exporting right now?
02:19Now it's very little LNG because we can't, of course, export through the homeless straits.
02:26So very sparingly, some ships are crossing the straits, but a very small amount.
02:31I mean, it's not something that would be measurable in a percentage point of view.
02:37When you do get a shipment out, how do you do it?
02:40Are you turning your transponders off?
02:42Are you getting escorts?
02:44No, I mean, some shipments are going through the Iranian route to Pakistan, and some are going through the U
02:52.S. route to other destinations.
02:55And, you know, I mean, it's just a few ships that are passing, that were able to pass through the
03:04straits, but it's not much.
03:05I know there's one pipeline that goes through Oman.
03:08Are you starting to think about pipelines that can be used in the future?
03:13There's lots of talk of pipelines through Oman and UAE, maybe even Syria.
03:18Yeah.
03:19Of course, His Excellency, the Prime Minister, earlier mentioned this, and he diverted the question to me.
03:26That's what we're asking.
03:27Of course, a lot of people have brought these ideas, as you mentioned, Syria, Yamba, Oman, and Fujaira, UAE.
03:39So these have all been proposed, and we have been welcomed by all these countries to use their lands, and
03:46we appreciate their offers to have that capability.
03:50We did the economic study, and we did the technical study.
03:56When you talk about oil, it's completely different than gas.
03:59I mean, if you can transport, we have a pipeline of gas that goes to UAE and Oman, and it's
04:05a delivery of natural gas, which is completely different than LNG.
04:08So we already have started the construction of all our trains for the expansion to go from 77 million tons
04:15to 142 million tons.
04:18So for us to go and build LNG, it would have to be built in the terminal that we would
04:24export in.
04:25So whether it's Tartus in Syria, or Yamba, or Fujaira, or Oman, we'd have to build a new facility and,
04:34you know, transport gas there and liquefy it in that location,
04:39which would mean we would be building a redundant facility that we're already building in Qatar.
04:43So economically, it makes no sense to do that.
04:46You can't actually transport LNG.
04:50So I think the thing is, people are talking about diverting away from hormone strays just because of the oil
04:57and gas products that are transferred.
05:01It's, you know, it's sulfur, it's helium, it's LNG, it's condensate, it's LPG, it's everything.
05:07Naphtha.
05:08But in addition to that, that people don't speak about, we have huge expansions that we talked about.
05:14Today, we're the number two fertilizer producer.
05:17We're going to be the number one by doubling our production.
05:20The LNG and all these facilities that we are building and others inside the Straits are building.
05:25We manufacture a lot of these facilities outside Qatar.
05:29So you have huge facilities that are on large ships that some are 50 meters by 50 meters that are
05:35transported after being constructed in Asia.
05:39And they have to be tugged into location, if you will.
05:43So all these facilities are not able to enter.
05:47So all our projects are being delayed because of lack of entry.
05:50You can't, you can drop off boxes or cargos in one of the other terminals and bring it in.
05:57It's going to be more expensive to have inflationary pressure.
06:00But all these huge facilities that you need to build will not be able to come in through Hermos.
06:07Hermos Strait is not only oil and gas.
06:09It's bringing in cars.
06:10It's bringing merchandise.
06:12It's bringing a lot of things that are, that we need for our facilities that can go through other ports.
06:18So just on the pipelines, though, I don't get the sense that you're in, there's no urgency to do this.
06:24No, no, it's not urgency.
06:25We have decided not to do pipelines.
06:28And I think the decision in Qatar was based on commercial and technical.
06:33And we are only going to be using the Straits.
06:35The thing that's more important, I think, is the last point, His Excellency, the Prime Minister, mentioned,
06:42which is we need to have a good relationship with our neighbors.
06:48Iran is going to be there for, you know, to live with my grandkids and their grandkids.
06:54And we're all in one region.
06:56We need to all get along together and have some kind of understanding that we can all live, live peacefully.
07:02You know, we've been peacefully living, you know, for centuries together.
07:08And we need to have that kind of understanding where these hostilities are not repeated again
07:13and have economic ties together that would outlast all these things.
07:18So you don't see a world where the Strait of Hermos becomes obsolete?
07:22I think it's never going to be obsolete.
07:25And obsolete for whom?
07:26I mean, it's, you know, I mean, I have heard this before.
07:30And I think this is...
07:30Well, the Energy Secretary said in the future, maybe two years even, it'll be a worthless waterway.
07:36Who, which oil minister?
07:38Sorry, the Treasury Secretary.
07:40Treasury Secretary, okay.
07:41I mean, maybe this is his view.
07:43I think this is completely wrong.
07:45Have you told the United States this?
07:47No, I'm telling the United States today.
07:52Nobody has asked me whether it's going to be obsolete or not.
07:56But I think if you look at the trade that we have through that, Hermos Trades, it cannot be obsolete
08:03because, you know, everything through, you know, that comes through to Iraq, to Iran, to Qatar, to Kuwait, to Bahrain.
08:12I mean, we have a few countries that have waterways outside the Gulf, but the rest of the countries are
08:17all inside the Gulf.
08:19So you have a lot of trade other than oil and gas that is needed.
08:22So to call it obsolete, I think, is wrong.
08:26You got quite an applause there.
08:28The Treasury Secretary is actually down the block at J.P. Morgan headquarters having preliminary trade talks with Hali Fang.
08:34The President of the United States will be sitting down with the President of China this week.
08:38Are you going to meet your counterparts this week alongside the U.N. General Assembly?
08:42Actually, I am here just for this session, and I'm leaving back to Doha.
08:47I have plenty to do in Doha.
08:49I mean, we have a lot of things going on in the oil and gas industry, as you know.
08:53So I won't be meeting anybody now.
08:56But, I mean, Chris Wright, Secretary Wright, and I have a very good relationship.
09:00We talk all the time.
09:01He understands my perspective very well.
09:04And if this is brought up again, I can repeat it to anybody, that I don't think that it's ever
09:10going to be obsolete.
09:12When it comes to Raslefon and the damage that was done there, there is some satellite imagery that shows there
09:18is production still happening.
09:21Can you give us a sense of how much you are producing there right now?
09:24It's very difficult to put a number, because from an LNG perspective, it's very minor to what we're producing.
09:29Of course, we're producing gas, and, you know, we're self-sufficient in jet fuel, gasoline, diesel, and, you know, electricity
09:37that we need production for.
09:40Some petrochemical facilities are producing, and they have land access to export, but the majority of our production is not
09:49producing.
09:50If the Shreed of Hormuz was to reopen, how quickly could you get back to normal capabilities?
09:56I mean, with the subtraction of the 17%, we can get back to normal operations within a couple of weeks.
10:04But right now, you're still dealing with partners that you have a force majeure with.
10:08Yes.
10:08How are you relying on some of your other energy facilities outside Qatar?
10:15You've done exploration in Guyana, Namibia, in Texas.
10:19The way these sales and purchase agreements work with buyers is you have a joint venture agreement with some, even
10:28a train that's tied to a sale.
10:30So when that train is out, you have force majeure, you know, tied to that train, and you don't have
10:36the obligation to substitute it or bring make-up volume from other locations.
10:42And that's how all our agreements are.
10:44So all these agreements are tied.
10:46The force majeure is because we can't pass through this trade.
10:48When we pass through this trade, then that goes to that customer.
10:52But we're not making up from other volumes.
10:54You might be referring to some of the news that came out that we're in the market for LNG and
11:00we're buying LNG.
11:02You know, I have announced in 2024 that we are building the largest trading organization, one of the largest trading
11:09organizations in LNG.
11:10And I did mention that we are going to be very large.
11:15I would like to mention today that we will be in the very near future the largest LNG trader in
11:20the world by far.
11:22And we're building our position to become the largest trader.
11:26And we don't mention something that we don't become if we're not confident.
11:29What is the status?
11:31I just got back from Midland and Odessa.
11:33What is the status of Golden Pass?
11:36Golden Pass, the first train has started.
11:39So we have started shipments from the first train.
11:42We expect next year to have both second and third train in full operation.
11:47But first train is operational.
11:49Like any facilities with, you know, startup and commissioning, you have some hiccups and issues that you have to work
11:56through.
11:57But we're happy with that project and we're proceeding.
12:00And when it comes to exploration, are you open to further exploration outside of Qatar?
12:05Yeah, we're growing.
12:06We have had a strategy of growing outside Qatar around the world.
12:10We're one of the largest exploration block holder in the world.
12:13So we have exploration around the world.
12:15I mean, Namibia, Cyprus, Angola, you know, I mean, really everywhere with Brazil, Argentina.
12:23Anywhere there is exploration, you'll find us.
12:26Here in the U.S., you mentioned Golden Pass has started.
12:30The other project that we have here is the largest ethane cracker in the world.
12:36It's called Golden Triangle with CP Cam Chevron Phillips.
12:41The project actually, as we speak, is starting commissioning.
12:45It should be starting up in the next few weeks.
12:48It will be announced in due course.
12:50We own 49% and 51% is owned by Chevron Phillips.
12:55We have a similar project in Qatar that will start up next year.
12:59And for our expansion projects, we're expecting a few of our LNG trains of the new NFE trains to start
13:11up next year and the following year, NFS trains.
13:15So our expansion is going well.
13:19Of course, it will depend a lot on Hormuz Traits for the additional trains that are going to come because
13:25that could push it back if we can't get facilities coming in.
13:29Michelle mentioned how Qatar has been so critical in a number of negotiations and diplomacy, even behind the scenes in
13:36something like Venezuela.
13:37How are you positioning yourself when it comes to potentially energy exploration in Venezuela?
13:43I know a lot of people even in this room are looking to get back into that country.
13:46Yeah, I think we have talked to some of our partners about entering into Venezuela, and we're looking at that
13:54seriously.
13:55And when there is something, you'll see us announce it.
13:58So potentially this year?
14:01I'm not sure on that.
14:04Things like that, you could work on something and it materializes or it doesn't.
14:08But Venezuela is a country we're looking to enter, among many other countries with our partners.
14:13Amongst this first majeure, you have some of your Asia partners now having to rely on coal.
14:19Europe is looking all around the world now because they've been hit twice, having to first rely so much on
14:25Russian energy.
14:26And then during that crisis really came to Qatar and you fill that void.
14:31What is the outlook like for these countries that are very vulnerable when it comes to energy shocks for the
14:37winter when all summer they should have been stockpiling?
14:40Yeah, the issue with that is, you know, maybe going back to the obsolete part of it, of the homeless
14:47trades, because you are not exporting LNG from Qatar.
14:51The prices have been surprisingly low, actually, through all this, whether it's oil and other.
14:58The product prices have been high.
14:59Not sure if consumers agree with that.
15:01The prices of products have been higher, not crude.
15:04I'm just saying crude.
15:05But if you look at gasoline and diesel, I mean diesel in the U.S., you can see how high
15:10it is.
15:11But if you look at, you know, the TTF, the gas price in Europe that you are mentioning, the gas
15:16price is equivalent to $160 today, okay, in oil terms.
15:21And that will go higher if foremost rate is not open because, you know, the storage in the summer, and
15:28this summer was unseasonably hot in Europe.
15:32And in Europe in the past did not have a lot of air conditioning.
15:35We used to always say the Arab countries or the Middle East countries pull more power in the summer because
15:41of air conditioning.
15:42Guess what?
15:43Now even Europe is pulling a lot in the summer when it's too hot.
15:47So if they have a harsh winter or the winter is long, then you could see a big depletion of
15:52their reserves.
15:53So they're stockpiling now for, you know, to get ready to the winter, whether it's Asia or Europe.
15:59And it could get much higher.
16:03If this continues, are you worried you're going to lose some of these long-term contracts?
16:08Are buyers just going to be forced to look elsewhere?
16:11No, I mean, it's called a force majeure for a reason.
16:15But, you know, I understand the logic of people looking at this and saying, is Qatar reliable or not reliable?
16:22And we have been reliable over 30 years with zero default on any delivery to any customer around the world.
16:32So people know what we are about and how resilient we are and how, you know, trustworthy we are.
16:39But this is something beyond our control.
16:41As soon as this passes, we'll be back to the same seller that we used to be.
16:47And our volume is so large that it's difficult to ignore, if you will, for the growth that's needed in
16:54the world.
16:54We think that the growth in LNG is going to be much higher than people think, driven by economic growth
17:01and also AI that was discussed earlier.
17:05And that's around the world, not only, I mean, in the U.S., whether it's Qatar, whether it's everywhere around
17:11the world.
17:11Everybody needs more power.
17:12When it comes to your expansion plans within the country, what is the status of the Northfield East?
17:18Are you prepared to even expand there even more once you pass this crisis?
17:24Northfield East is going very well.
17:26We expect the first train to come online in the first half of next year.
17:31And then possibly a few more trains from NFE to come next year.
17:36So the contractors are, we are constructing.
17:40So these are going very well.
17:42NFS is also going well.
17:44But as I told you, the critical part is some of the equipment that will not be able to enter
17:49the straits, if this continues, could delay some of these projects.
17:54So supply chain knock-on effects from the straiters, of course.
17:58And just finally, looking long term, we went into this year with everyone talking about being oversupplied next year.
18:04How do you view the market into 2027, even 2028?
18:07Yeah, I think if you assume Qatar goes back online, you know, as we already lost 17%.
18:16There is going to be a glut expected because of the U.S. volume and probably 2728.
18:22But we're long term players.
18:24The reason we came into this, or all the expansions, we're really targeting 2027 beyond, you know.
18:32So after 2030, we see there is going to be additional need for LNG.
18:37And that's what everybody sees.
18:39You see more LNG coming from the U.S. and some other places.
18:42Your Excellency, thank you so much for your time this morning.
18:46Thank you very much.
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