Industry

HE Saad Sherida Al-Kaabi , Qatar’s Energy Minister, CEO and president of QatarEnergy speaking at the Qatar Economic Forum. (Image source: QatarEnergy)

Qatar now expects production from its massive North Field East LNG expansion to start up in 2027, according to HE Saad Sherida Al-Kaabi , Qatar’s Energy Minister, CEO and president of QatarEnergy

Speaking at the Qatar Economic Forum, Powered by Bloomberg: UNGA Special Edition 2026 in New York, the Minister said the first production train at North Field East – the initial phase of Qatar’s LNG expansion – is expected to come online in the first half of 2027 as shipping disruptions in the Strait of Hormuz slow projects across the country’s economy. It had previously been expected to start production this year.

Tightening LNG supplies

The world's largest single non-associated gas field, the North Field, spanning over 6,000 sq. km, represents 20% of the world's total gas reserves. Qatar’s North Field expansion projects aim to raise LNG production capacity to 142mn tons per annum (MTPA) before the end of this decade. The North Field South project – the second phase of the expansion – is slated to come online in 2028, Al-Kaabi said – but these timings will depend on what happens in the Hormuz Strait and the ability to get facilities coming in.

The timeline reinforces the expectations that the near-closure of the Strait of Hormuz due to the Iran war threatens to tighten global LNG supplies for years, Bloomberg comments. Disruptions have already cut LNG supplies from Qatar — the world’s second largest LNG exporter and a key supplier to both the Asian and European markets — sending spot prices surging to the highest level since 2022 in Asia and Europe.

Qatar’s Ras Laffan plant, which produced nearly a fifth of the world’s LNG before the war began in February, can resume operations at undamaged parts of the facility “within a couple of weeks” when Hormuz reopens, the Minister said. The attack on Ras Laffan early on in the conflict resulted in damage to two LNG trains and Shell’s GTL plant, prompting Qatar to declare force majeure to its affected buyers.

“Repairs on the GTL train will be concluded in the first quarter of 2027. However, it will take three years for repairs on the two LNG trains,” the Minister said. 

Qatar is currently exporting a very small amount of LNG through the Strait, Al-Kaabi said, adding that Doha has decided not to build bypass pipelines.

“LNG, our main export commodity, cannot be transported by pipelines. We will have to transport it by pipelines as gas and then liquify it at the receiving terminal, wherever that may be. This means we are building reductant facilities to the ones we are already building in Qatar as part of the North Field expansion project. This makes no economic sense.”

Diversifying options

Qatar is pivoting to become a larger trader of LNG in the meantime, and is handling more LNG outside of the Persian Gulf with the start of its Golden Pass export facility in the US. Shipments have started from the first train.

“We expect next year to have both the second and third trains in full operations. We are also building the largest ethane cracker in the world at the Golden Triangle Polymers Project.” The project will be starting up in the next few weeks, he said.

 “We will be, in the very near future, the largest LNG trader in the world by far,” said Al-Kaabi. “And we’re building our position to become the largest trader.”

Cyber risk is growing in the face of increased connectivity. (Image source: Adobe Stock)

Industrial companies are increasing cybersecurity investment as connected operations, AI adoption and IT/OT convergence expand operational risk, with more than one-third seeing cybersecurity risk as a top obstacle to growth, according to a new study from Rockwell Automation 

Industrial companies are connecting more systems, scaling AI faster, and pushing operations to move in real time. Those investments create speed, efficiency and flexibility, but also expand operational risk. As organisations continue to connect information technology (IT) and operational technology (OT) systems, scale AI initiatives, and expand the use of operational data across the enterprise, they create new dependencies that can increase exposure to cyber-related risk, underscoring the need to strengthen resilience.

The report, Operational Resilience in the Age of Connectivity, based on input from 1,500 manufacturing and industrial operations decision makers across a range of industries in 17 countries, reveals a disconnect between confidence in comprehensive cybersecurity protection and operational risk. Although industrial organisations are investing in cybersecurity in the face of the growing risks, those investments do not automatically translate into operational resilience.

Key findings

Key findings from the report include:
• Organisations remain confident despite rising incident exposure: While 46% of organisations experienced a cyber incident in the past year, 90% say they are confident in their ability to prevent, contain or recover from one.
• Cybersecurity delivers strong perceived ROI: 62% of organisations have already invested in cybersecurity platforms, and cybersecurity ranks as the second-highest ROI-generating technology investment reported by respondents.
• Organisations are looking to AI as part of their cybersecurity response: 45% plan to apply AI and machine learning to cybersecurity initiatives over the next 12 months.
• IT/OT convergence creates both risk and opportunity: IT and OT integration points rank as the second-most vulnerable to cyber incidents. At the same time, 37% say securing IT/OT architecture will drive positive business outcomes over the next five years.

The findings point to a clear shift: organisations are embedding cybersecurity into broader digital transformation strategies alongside AI, automation, cloud technologies and connected operations. But as environments become more interconnected, resilience depends on how well organisations can translate investment into coordinated action.

Resilience requires continual improvement

Resilient operations depend on continuously adapting OT cybersecurity programmes as operational needs and risks evolve, the report says. It requires a proactive, end-to-end approach aligned to globally recognised frameworks and standards such as NIST, NIS2 and IEC 62443. This gives organisations a structured roadmap to improve security maturity while meeting regulatory requirements.

The organisations that gain the most value from cybersecurity will be those that take a proactive, programmatic approach. By building visibility, risk-based decision making, secure architectures, continuous monitoring and recovery readiness into their operations from the start, they can reduce operational risk, sustain production during disruption and enable the business to move forward with confidence.

The good news is that organisations are rising to the challenge. They no longer treat cybersecurity as a separate IT initiative but are instead increasingly viewing it as part of operational performance.

“Industrial organisations understand that cybersecurity directly affects uptime, continuity, productivity and growth, but technology investments alone do not create operational resilience or confidence in an organisation's security posture,” said Rick Kaun, global director, cybersecurity services at Rockwell Automation. “True resilience is built when cybersecurity becomes an integral part of business strategy. Organisations that proactively manage risk and prepare for disruption are better positioned to protect operations, sustain production and gain a competitive advantage.”

Frequently Asked Questions:

What is operational resilience?

Operational resilience is an organisation's ability to sustain safe, secure, and reliable industrial operations by proactively managing risk, limiting disruption and providing rapid recovery from incidents.

Why is IT/OT convergence increasing cybersecurity risk?

IT/OT convergence increases cybersecurity risk because it expands the attack surface, introduces new points of connectivity and allows threats that originate in IT environments to potentially impact industrial operations. As operational data, systems, users and third-party connections become more interconnected, a single cyber incident can have broader consequences across production, safety, quality and business continuity.

How are industrial organisations using AI for cybersecurity?

According to the research, 45% of industrial organizations plan to apply AI and machine learning to cybersecurity over the next 12 months to help improve detection, monitoring and risk management capabilities.

The full report, is available HERE and explores how industrial organisations are strengthening cybersecurity, managing IT/OT convergence and building more resilient operations in an increasingly connected environment.

The conflict in the Middle East is having a significant impact on mergers and acquisition. (Image source: Adobe Stock)

Global upstream mergers and acquisitions (M&A) activity is set to exceed last year’s US$175 billion total, with nearly US$130 billion in transactions announced as of August 2026 and a further US$137 billion in the pipeline, according to Rystad Energy

However, oil-price volatility is widening valuation expectations and making deal execution increasingly difficult.

Atul Raina, VP, oil and gas M&A said, “Oil price volatility has created a deeper opportunity set, but it has also made deals harder to execute. Sellers are looking at elevated spot prices and near-term cash flow, while buyers are underwriting against a backwardated price strip and the possibility that current conditions may not last.

"The opportunity is clearly there, but pipeline value does not automatically translate into executable deal value. Timing, transaction structure, and the willingness to bridge valuation expectations will determine whether the remainder of 2026 produces a breakout or a growing backlog."

Global upstream M&A deal value increased 55% year on year to approximately US$100 billion during the first half of 2026, with North America accounting for more than US$68 billion, or 68%, of first-half global deal value. Shale transactions represented more than US$63 billion—equivalent to 92% of North American activity and 63% of global upstream M&A. Devon Energy’s US$25.1 billion merger with Coterra Energy and Shell’s US$16.4 billion acquisition of ARC Resources together accounted for 41% of global deal value.

Middle East conflict expands the pipeline but slows down execution

The conflict in the Middle East has had a significant impact on upstream M&A. Approximately US$56 billion, or 56%, of first-half deal value was announced before the conflict began on 28 February. A further US$44 billion was announced from March through June, despite Brent averaging approximately US$99 per barrel between March and July. This is the lowest average monthly deal value since 2016 (US$10.7 billion monthly average) and 2020 (US$8.6 billion monthly average) when Brent prices averaged around US$44 per barrel around $42 per barrel, respectively.

At the same time, high but volatile prices have encouraged several E&Ps, particularly privately owned E&Ps in the US shale, to test the market, increasing the global opportunity pipeline from approximately US$98 billion before the conflict to US$137 billion currently. This volatility in prices and uncertainty around a potential resolution to the conflict also brings risks around deal execution. Rystad Energy expects buyers and sellers to respond with greater use of contingent or deferred considerations, flexible effective dates and stronger termination protections as buyers and sellers seek to share commodity-price and closing risk.

International dealmaking becomes more selective

Outside North America, first-half deal value increased 7% year on year to more than US$32 billion. South America led international activity with approximately US$13 billion, supported by consolidation in Argentina’s Vaca Muerta. Africa also recorded stronger activity as majors returned as buyers of offshore exploration positions in Angola and Namibia.

International activity is expected to remain more selective despite nearly US$52 billion of opportunities on the market. Major-led divestments and farm-downs will likely dominate as companies recycle capital, share development expenditure and reduce portfolio concentration while retaining exposure to strategically important assets.

The global M&A market therefore has sufficient opportunity depth to produce another strong year. However, it hinges on whether buyers and sellers can structure transactions that accommodate a volatile oil-price outlook and increasingly complex geopolitical risks.

The signing between ADNOC and Bosch. (Image source: ADNOC)

ADNOC, XRG and Masdar have announced agreements with leading German companies, across energy, industry and advanced technology, potentially involving more than €5 billion of investment, combining the UAE’s expertise in energy and capital with Germany’s industrial and technological capabilities

The deals with RWE, Securing Energy for Europe (SEFE), MB Energy, Covestro, Siemens Energy, Siemens Industrial and Bosch Middle East span liquefied natural gas (LNG), gas, renewable energy, advanced materials and technology.

The agreements were signed during the state visit by UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan to the Federal Republic of Germany, when €40 billion in long-term investment in Germany was announced.

The agreements signed by ADNOC, XRG and Masdar include:
• ADNOC and RWE Supply & Trading GmbH Letter of Intent to progress LNG deliveries into Germany and Europe as well as Asia, supplied from ADNOC Gas’ and XRG’s growing LNG portfolio including Ruwais, Das, Rio Grande, Mozambique and Argentina, with supply commencing in the early 2030s.
• TA’ZIZ and Covestro are looking to progress a world-scale methylene diphenyl diisocyanate (MDI) value chain in Ruwais
• ADNOC, XRG and SEFE signed an agreement to explore cooperation in natural gas and LNG, spanning gas supply, infrastructure, logistics and portfolio optimisation, to support long-term energy security and market development in Europe.
• Covestro, Fertiglobe and MB Energy signed an MoU to collaborate on the development of low-carbon ammonia supply chains into Germany.
• In renewables, Masdar and RWE signed an MoU to consider joint participation in future German offshore wind auctions, while Masdar and Luxcara established a strategic partnership to explore joint investments in offshore wind and battery storage projects in Germany and wider Europe.
• ADNOC also signed Strategic Collaboration Agreements with Bosch Middle East, Siemens Energy and Siemens Industrial to explore collaboration on advanced technology and artificial intelligence.

The agreements build on existing investments by ADNOC, XRG and Masdar across Germany’s energy and industrial base. ADNOC also has 1.6 million tonnes per annum (MTPA) of long-term LNG supply agreements into the German market.

His Excellency Dr. Sultan Ahmed Al Jaber, ADNOC managing director and group CEO, Executive chairman of XRG, and Chairman of Masdar, said, “The UAE and Germany are building on decades of trusted partnership to advance economic growth and shared prosperity for the long-term. The additional €40 billion of intended long-term investments announced this week, together with the agreements ADNOC, XRG and Masdar signed today with our German partners, build on our investments across Germany’s energy and industrial landscape and mark another step forward in greater cooperation that will create new opportunities for both countries.”

In an interview with Bloomberg TV, UAE Minister of Foreign Trade Thani Al Zeyoudi said the €40 billon investment is about “reaffirming the long standing relationship and historical partnership” between the two countries.

“The 40 billion is just the beginning,” Al Zeyoudi said. “We’re going to shop around for the big opportunities that are going to bring this relationship to the next level.”

The UAE and other Gulf states are increasingly looking to broaden defense ties beyond Washington, as the Iran war drags on with no end in sight.

“The conflict is something we’re dealing with,” Al Zeyoudi said. “We’re maneuvering around the challenges and the impacts of the geopolitics and the region.”

The UAE is hoping that, by diversifying its international partners, it can pave the way to securing vital supply chains and potentially attracting production of equipment locally to bypass any export constraints, Bloomberg notes.