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Qatar National Bank (QNB) believes that Qatar is well positioned to maintain its dominance in the global LNG market, despite the expected rise of LNG exports elsewhere over the coming decade: “The development of US shale gas extraction to tap previously inaccessible reserves, the so-called US shale gas revolution, is not proving to be a game changer for Qatar.”
This is true, insofar as the game has not yet changed; however, serious challenges to Qatar’s position in the global LNG market are inevitable over the medium to long term.
QNB points out that shale gas production in North America has largely met US gas demand, effectively eliminating an important outlet for Qatari LNG. But Qatar will be able to rely on expanding LNG demand in Asia, QNB says: “While the US is becoming energy independent, Asia continues to have ever-growing energy needs. Asian LNG demand has grown rapidly in recent years from both traditional buyers and new ones. This trend is likely to continue in the future.” Indeed, Qatar has shifted much of its LNG sales to Asia over the past several years, though Europe has reemerged in recent months as a target market. (CONTINUED - 1151 WORDS)