Qatar Gets Flexible In Bid To Adapt To Brave New LNG World

Qatar is in the process of being overtaken by Australia and the US as the world’s top LNG supplier. Given weak global demand, these extra supplies will keep prices under pressure. Contract flexibility and partnerships with long-term customers will be Qatar’s key weapons in its attempts to adapt to this new world LNG order.

As of end-2015 Qatar was the world’s largest LNG producer with 77mn tons/year of liquefaction capacity. But it will be overtaken by Australia during 2017 and likely by the US early next decade (see table 1).

Since 2005 it has had a moratorium on new development of its giant North Field, which supplies all 14 of Qatar’s LNG trains. This is set to continue. Instead of trying to compete on volume Qatar is instead focused on adapting to a new LNG world. The growth of new supplies elsewhere coincides with structural changes to Qatar’s sales portfolio, increasing the potential for marketing flexibility and strategic partnerships. (CONTINUED - 1851 WORDS)

DATA INSIDE THIS ARTICLE

table 1: Global Lng Liquefaction (Mn T/Y): Us, Aussie Boom Will See Qatar Share Fall To 17% By 2020
table 2: Qatar’S Current Medium & Long-Term Lng Sales Contracts