Qatar energy: contracting into the North Field expansion
The world's largest LNG expansion continues, now alongside years of repair after the 2026 strikes on Ras Laffan. Here is how foreign contractors get in, and what has changed in the contracts.
The largest LNG expansion programme in the world
QatarEnergy is in the middle of the largest liquefied natural gas expansion ever undertaken. The North Field East project adds four mega trains of 8 million tonnes a year each, 32 mtpa in total; North Field South adds two more, 16 mtpa; and North Field West, still in design, is meant to add another 16 mtpa, taking national capacity from 77 to around 142 million tonnes a year by about 2030. Investment across the programme runs to tens of billions of dollars, with QatarEnergy carrying most of it and international oil companies as partners in the trains.
For foreign suppliers and contractors, that programme, together with the maintenance and sustainability work on existing facilities, is the main source of large industrial contracts in Qatar: engineering, construction, fabrication, inspection, equipment, logistics, IT and services. The buyer is QatarEnergy and its joint ventures, and the route in runs through their supplier registration and local content expectations.
War damage, force majeure and revised timelines
The programme now operates against a very different backdrop. During the US and Israeli conflict with Iran in March 2026, Ras Laffan Industrial City was struck: by drones on 2 March, after which QatarEnergy halted LNG production and declared force majeure on deliveries, and by missiles on 18 and 19 March. QatarEnergy reported damage to two LNG trains, Trains 4 and 6, removing about 12.8 mtpa, roughly 17% of export capacity, and to a gas-to-liquids train at Pearl GTL. It estimated repairs at three to five years and declared long-term force majeure on affected supply contracts with buyers in Italy, Belgium, South Korea and China.
The expansion continues, but on revised timing: in September 2026 QatarEnergy guided that the first North Field East train would be commissioned in the first half of 2027, rather than mid-2026, with North Field South to follow in 2028. For contractors, the practical effect is twofold: more work, because repair and restoration sit alongside the expansion, and more risk, because security, insurance, logistics through the Strait of Hormuz and force majeure have moved from boilerplate to the centre of the contract.
Contracts signed before 2026 often defined force majeure in generic terms. For new work in Qatar's energy sector, check how war, attacks on facilities, regional conflict and shipping disruption are treated, what notice is required, whether the contract suspends or terminates after a period, and how costs of delay are shared. Under Qatari civil law and in arbitration, the wording you agree is what will be applied.
Registration, prequalification and local content
A Qatari entity or partner
Most contracts require a registered Qatari entity, or a joint venture or agency with one, with the right Commercial Registration activities and, for many services, a licensed presence in Qatar.
Supplier registration
Register on QatarEnergy's supplier systems and those of the joint ventures you target, with the category codes for your products and services. Prequalification reviews capability, HSE record, financial standing and references.
Local content (Tawteen)
QatarEnergy's localisation programme, Tawteen, aims to build a local supply chain for the energy sector and favours suppliers that manufacture, assemble or deliver services in Qatar and employ locally.
Public procurement rules
Ministries and government entities procure under the tenders and auctions law (Law No. 24 of 2015), while QatarEnergy and its joint ventures apply their own procurement procedures.
What shapes the deal
Energy-sector contracts in Qatar are usually governed by Qatari law, with arbitration common for large international contracts; Qatar's Arbitration Law (Law No. 2 of 2017) follows the UNCITRAL Model Law and Qatar enforces foreign awards under the New York Convention. Commercial disputes outside arbitration go to the Investment and Trade Court. Petroleum operations sit under their own fiscal agreements rather than the ordinary 10% corporate tax, but contractors and subcontractors are taxed under the ordinary rules: the 10% rate on the foreign-owned share of a Qatari entity's profit, and withholding tax on payments to non-resident subcontractors.
Three practical points recur. First, permanent establishment: a foreign contractor whose staff work on site in Qatar for extended periods will usually have a taxable presence, whatever the contract says. Second, withholding: a Qatari main contractor paying a foreign specialist must report the contract on Dhareeba within 30 days and withhold. Third, labour: site workforces are subject to the Labour Law as amended in 2026, the minimum wage, the Wage Protection System and heat-stress working-hour restrictions, and the main contractor's reputation depends on its subcontractors' compliance.
Branch, JV or local entity
Foreign contractors working on Qatar energy projects use three structures, and the choice affects tax, liability and prequalification. A branch registered for a specific contract is common for international EPC contractors: it is tied to that contract, taxed at 10% on its Qatari profit, and closes when the work ends. A joint venture with a Qatari partner helps with local content and relationships but needs a clear agreement on control, profit share and exit. A Qatari company, with up to 100% foreign ownership where the activity qualifies, suits contractors planning a long-term presence and multiple contracts.
Whichever is chosen, prequalification panels look for the same things: a registered Qatari presence with the right activities, a local workforce plan, a clean HSE and labour record, and evidence of the financial capacity to carry the contract. Building those before the tender opens is what distinguishes the bidders who are invited from those who read about the awards.
Security, insurance and continuity
Since March 2026 the risk profile of work at Ras Laffan and other energy sites has changed, and operators' expectations have changed with it. Contractors should expect stricter site security and access procedures, emergency response obligations written into contracts, and closer scrutiny of business continuity plans. Insurance needs fresh attention: standard construction all-risks and liability policies often exclude war and terrorism, and political violence cover is now a commercial necessity for many contractors rather than an option.
Logistics deserve the same care. Equipment and materials moving through the Strait of Hormuz face delay and higher freight and insurance costs in periods of tension, so delivery schedules, liquidated damages and price adjustment clauses should reflect that exposure. Contractors who price these risks honestly at tender stage are better placed than those who absorb them later in disputes over delay.
Questions we get asked first
What is the North Field expansion?
QatarEnergy's programme to raise LNG capacity from 77 to around 142 million tonnes a year through North Field East (32 mtpa), North Field South (16 mtpa) and North Field West (16 mtpa, in design).
How did the 2026 attacks on Ras Laffan affect Qatar's LNG industry?
Missile strikes on 18 and 19 March 2026 damaged two LNG trains, removing about 12.8 mtpa or 17% of export capacity, and a gas-to-liquids train. QatarEnergy estimated repairs at three to five years and declared long-term force majeure on some supply contracts.
When will North Field East start production?
QatarEnergy guided in September 2026 that the first train would be commissioned in the first half of 2027, with North Field South following in 2028.
How can a foreign company supply QatarEnergy?
Through a Qatari entity or local partner, registration and prequalification on QatarEnergy's and its joint ventures' supplier systems, and a local content offer aligned with the Tawteen programme.
How are energy contractors taxed in Qatar?
Under the ordinary rules: 10% corporate income tax on the foreign-owned share of a Qatari entity's profit, withholding tax on payments to non-resident subcontractors, and permanent establishment risk for foreign contractors working on site.
A huge pipeline, now with risk priced in
Qatar's LNG expansion remains the region's biggest industrial opportunity, now joined by years of repair work at Ras Laffan. Win it with a proper Qatari presence, supplier prequalification and a credible local content offer, and protect it with contracts that take war, shipping and force majeure seriously.
Bidding for Qatar energy work?
We set up the Qatari entity, registrations and tax position that supplier prequalification will ask about.
Email us →Related reading
This article is general information, current as of 2026, and is not advice for any specific situation. Confirm current rules with the MOIC, the NBR or the relevant authority before acting.