Home / Business and Economy / Qatar's Deficit Skyrockets Amidst LNG Woes
Qatar's Deficit Skyrockets Amidst LNG Woes
9 Sep
Summary
- Qatar's budget deficit doubled to 21.2bn riyals in Q2 2026.
- LNG deliveries to Europe face extended force majeure until early November.
- The first-half deficit has surpassed the entire year's projection.
Qatar's budget deficit surged to 21.2 billion riyals in the second quarter of 2026, more than doubling from the previous quarter's 10.3 billion riyals. Total revenues for the quarter were approximately 25.6 billion riyals, while expenditures reached about 46.9 billion riyals.
The cumulative deficit for the first half of 2026 now stands at 31.5 billion riyals, surpassing the 21.8 billion riyal gap initially projected for the entire year.
These financial challenges coincide with disruptions to Qatar's liquefied natural gas (LNG) deliveries. European buyers are particularly affected, as QatarEnergy extended force majeure on deliveries into early November. This impacts supply contracts, with one Italian utility company citing 29 affected LNG cargoes.
Ship-tracking data indicates unusual movements of LNG carriers in the Gulf region, with some vessels turning back or remaining within the Gulf, suggesting ongoing complexities in resuming regular exports.
