Qatar is on the cusp of a historic LNG deal

Thanks to the political weight in the world, the United States manages to hold the lead among LNG suppliers. Therefore, to remain competitive, Qatar needs to sell huge amounts of liquefied natural gas now in a market that could be oversaturated in a few years. At the same time, an alternative supplier to the United States will have to cut through the ties that Washington has established using geopolitical dominance. But Qatar's dreams can become goals and come true. Bloomberg senior energy reporter Steven Stapczynski writes about this.

According to the expert, Qatar is on the verge of a historic deal. A few years ago, the world's leading exporter shocked the industry by announcing a 60% increase in production through 2027. It was a classic move to capture market share and drive competitors out of the US and Australia.

However, grandiose plans are one thing, and grounding reality is another. Since then, Qatar has found only a few buyers for new shipments, while investing heavily in development that may not pay off.

The first part of the problem for Doha is timing. The world needs LNG now, but not as much as it did in the middle of this decade, when the launch of industry projects is likely to coincide with similar actions by the US and some other countries. This means that buyers are reluctant to sign long-term agreements with Qatar as they seek to negotiate lower prices by playing on infighting between producers.

But the clock is ticking, time is running out

Stapzinski warns.

As a result, the Middle Eastern country has entered into deals for the supply of approximately 6 million tons per year from its newly discovered and developed fields. This is just a fraction of the total capacity of 49 million tons, which will be phased in from around 2026 to 2027. But contracts for these huge volumes will be signed by the end of this year.

In fact, Qatar is about to embark on one of the most ambitious LNG deals in the history of the industry, offering competitive prices combined with softer terms that will force consumers to line up to get an agreement with this particular supplier.

The industry is running out of time, but in any case, buyers benefit from it

Stapzinski summed up.
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  1. Anton Kuzmin Offline Anton Kuzmin
    Anton Kuzmin (Anton Kuzmin) 24 May 2023 11: 36
    Auto RU. Written in the annotation is nothing more than "wet girlish dreams" of the Wild West. Who said that the time of fossil sources is running out? I agree with you only if we are talking about shale undergas. Apparently he is meant to be. If Gring's undergas is FSE!, then from the point of view of the Wild West, this is the end of the industry. The end, but only in the USA and those who decided to follow them in principle unprofitable shale project. But in addition to the basically unprofitable shale projects, there are profitable projects for conventional gas. Are you aware that the Russian Federation grabbed the shelf in the Arctic Ocean even much more than the Polar Possessions of the USSR? And gas (and not only) is there like dirt?
    1. Vadim Kazakov Offline Vadim Kazakov
      Vadim Kazakov (Vadim Kazakov) 24 May 2023 17: 50
      And what? The Russian Federation at first voluntarily refused to supply gas by pipeline, and then they were blown up. Who will build the building plants if Russian LNG suddenly finds itself under sanctions? Who will sell this LNG then? Except for China, which is in no hurry to increase its dependence on Russian energy carriers.
      1. Sergey G Offline Sergey G
        Sergey G (Sergey G) 25 May 2023 11: 46
        no need to "whistle", Russia will find someone to sell its LNG ..... but dirty shale gas from the states is covered with a copper basin! ..state gas workers who were engaged in the extraction of shale gas are already selling their equipment, read the press.
  2. Alexander Gorev Offline Alexander Gorev
    Alexander Gorev (Alexander Gorev) 25 May 2023 09: 10
    What is 49 million tons of gas for world consumption?