QatarEnergy Secures $3 Billion Loan From Chinese Banks as LNG Exports Stall

QatarEnergy has secured a five-year loan of $3 billion from a group of Chinese banks, Bloomberg reported, citing anonymous sources with knowledge of the agreement. According to those sources, the lenders include Bank of China, Industrial and Commercial Bank of China Ltd. (ICBC), Agricultural Bank of China and China Construction Bank (Asia). Bloomberg said the funds are intended for general working capital.

The financing arrives amid prolonged disruptions to Qatar’s LNG export routes through the Strait of Hormuz. QatarEnergy extended a force majeure on LNG deliveries to Asia and Europe through the end of November as shipments via the chokepoint remain largely blocked by the ongoing U.S.-Iran standoff. Reuters calculations cited in August put Qatar’s lost sales at about $24 billion over six months after exports fell by as much as 96% following the onset of the Iran war.

Transit volumes have shown some signs of recovery, with LNG traffic through the Strait of Hormuz ticking up in recent weeks and a partial rebound in September, but flows remain more than 75% below pre-conflict levels. Qatar’s energy minister and QatarEnergy CEO, Saad Sherida Al-Kaabi, has said the company will not route volumes via pipelines as an alternative, citing commercial and technical reasons.

Observers note the Chinese-backed loan underscores continued appetite among Chinese banks to finance Gulf energy companies despite the regional security risks. The deal, as reported, reflects both immediate liquidity needs at QatarEnergy while its seaborne exports are curtailed and broader ties between China and Persian Gulf energy players.