July 14, 2024
Suit 25, Mangal Plaza, Nouakchott Street, Wuse Zone 1, Abuja- Nigeria.
OIL & GAS

Qatar’s 85% LNG Plan To Affect Global Projects in The US and Others

One of world’s top LNG exporters, Qatar, is planning an 85% expansion in its LNG output, from its North Field’s current 77 million metric tons per year (mtpa) to 142 mtpa by 2030, from previously expected 126 mtpa, as gotten from Reuters.

The move some market experts say, will have an impact on global projects in the United States, East Africa, and elsewhere. Senior Research Associate at Columbia University’s Center on Global Energy Policy, Ira Joseph, said:

“The Qataris realised that they should be able to offer pretty much the most competitive prices. They have the reserves, lower costs for building incremental capacity, the relationship with engineering firms and existing clients, so why stop here?”

“This suggests that they are hurtling into use it or lose it mode. If you’re the world’s low cost producer, why not throw down the hammer & scare away any competition that’s requiring long-term customers & financing,” he added.

Fraser Carson, Senior Research Analyst of Global LNG at Wood Mackenzie said the timing of Qatari announcement is “fortuitous”, as other major LNG competitors stall, in light of the Biden administration’s pause of U.S. LNG export approvals, Russian LNG is sanctioned and as civil unrest continues in Mozambique.

Following Europe’s decision to stop dependence on Russia’s pipeline gas following its invasion of Ukraine, competition between Qatar and United State intensified. As US gas suppliers filled the space, giving room for US to be the biggest LNG exporter in 2023, surpassing Qatar even though Qatar supplies also helped fill the space.

The U.S. LNG capacity will almost double over the next four years, but a decision to pause approvals for applications for new LNG export terminals, for environmental reviews, has prompted warnings from gas importers that the move would compromise future energy security worldwide.

According to Rystad Energy’s vice president for LNG research, Kaushal Ramesh as gathered by Reuters, “the signal the U.S. projects need to take from this: if they don’t go ahead, someone will.”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.